What counts as a genuine reason for a fixed term?

Genuine reasons include parental leave cover, a specific project with defined start and end, seasonal peaks (e.g. summer fruit harvest), funding-dependent work, and temporary fill-ins for absent staff. A desire to assess the employee, avoid permanent obligations, or use it as a probationary device will not satisfy section 66.

Can I pay 8% instead of giving annual leave?

Only for genuinely intermittent or short fixed-term work under section 28 of the Holidays Act 2003, and only where agreed in writing. For most fixed-term employees longer than 12 months, four weeks’ paid annual holidays applies.

What if the project finishes early?

The agreement should define the end trigger carefully. If the trigger is "completion of the Auckland warehouse fit-out", the employment ends on completion. If it is a specific date, the employment ends on that date regardless of project status unless the agreement allows for adjustment.

Can I include a 90-day trial in a fixed-term agreement?

Only if the employer has fewer than 20 employees and the fixed term is long enough for a trial to be meaningful. A trial is not a substitute for a genuine reason; both the trial requirements (section 67A) and the fixed-term requirements (section 66) must be met.

Can the fixed term be extended?

Yes, if both parties agree in writing and genuine reasons for the extension exist. Repeated extensions without clear justification risk reclassification as permanent employment.

What happens at the end of the fixed term?

The employment ends automatically on the agreed date, project completion, or event. The employee is paid out any accrued annual leave. There is no redundancy or notice obligation merely because the fixed term ends, provided section 66 has been complied with.

Can a fixed-term employee raise a personal grievance?

Yes. In New Zealand, fixed-term employees have the full range of personal grievance rights under section 103 of the Employment Relations Act 2000, including unjustified dismissal during the term, unjustified action, discrimination, and harassment.

EmploymentNZ

Fixed-Term Employment Agreement Template

A fixed-term employment agreement lets you hire an employee for a defined period, project, or event. Use our free New Zealand template to satisfy the strict "genuine reasons" test in section 66 of the Employment Relations Act 2000.

Create Your Fixed-Term Employment Agreement

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FIXED-TERM EMPLOYMENT AGREEMENT

EMPLOYER

Auckland Waterfront Festival Ltd.

1 Queens Wharf, Auckland CBD, Auckland 1010

By: Priya R. Naidoo, Chief Executive Officer

EMPLOYEE

Cameron J. O'Sullivan

78 K Road, Auckland 1010

Start: 1 September 2026 · End: 28 February 2027

Festival Marketing Coordinator · Fixed-Term

This Fixed-Term Employment Agreement (this "Agreement") is entered into between Auckland Waterfront Festival Ltd. ("Employer") and Cameron J. O'Sullivan ("Employee") pursuant to the Employment Relations Act 2000 (ERA 2000, s 66) and the Holidays Act 2003 (HA 2003). The Employee has been advised of the right to seek independent legal advice before signing this Agreement and has been given a reasonable opportunity to do so.

POSITION AND DUTIES

The Employee is employed as Festival Marketing Coordinator in the Marketing and Events department. The Employee shall perform the duties and responsibilities associated with that position and such other reasonable duties as the Employer may from time to time direct, consistent with the Employee's skills and experience. The position is based at Auckland CBD, Auckland. The Employee shall devote their full working time and attention to the performance of duties under this Agreement (ERA 2000, s 65(2)(a)).

FIXED-TERM NATURE OF EMPLOYMENT

This is a fixed-term employment agreement pursuant to the Employment Relations Act 2000 (ERA 2000, s 66). The employment shall commence on 1 September 2026 and expire on 28 February 2027 (the "Expiry Date"). The genuine reason for the fixed term is: the engagement is required to complete a specific project, being Auckland Waterfront Summer Festival 2026/2027 programme, which concludes on 28 February 2027. At the Expiry Date, this Agreement expires automatically and the employment ends by effluxion of time without further notice. This Agreement shall not convert to a permanent agreement at or after the Expiry Date unless both parties expressly agree in writing before the Expiry Date. The Employee acknowledges that the reason for the fixed term is genuine and understood, as required by ERA 2000, s 66(2)(a)–(b). Note: A fixed-term agreement may only be used where the Employer has a genuine reason based on reasonable grounds that applies to the position and the Employee's circumstances.

HOURS OF WORK

The Employee's ordinary hours of work are 40 hours per week, with specific days and times to be agreed with the Employer. The Employer may require the Employee to work additional hours where reasonable and necessary for the performance of their duties, subject to the Holidays Act 2003 (HA 2003) and the Minimum Wage Act 1983 (MWA 1983, s 6).

REMUNERATION

The Employee will be paid a salary of $65,000.00 NZD per annum, payable fortnightly by direct credit to the Employee's nominated bank account. This rate meets or exceeds the minimum wage as prescribed under the Minimum Wage Act 1983 (MWA 1983). All payments are subject to PAYE deduction and other lawful deductions.

LEAVE ENTITLEMENTS

The Employee is entitled to leave in accordance with the Holidays Act 2003 (HA 2003): (a) Annual Leave: 4 weeks' paid annual leave per year, accruing from commencement (HA 2003, s 16). Unused annual leave on expiry of the fixed term shall be paid out; (b) Sick Leave: 10 days' sick leave per year after six months' continuous employment (HA 2003, s 63), carrying over unused leave to a maximum of 20 days; (c) Public Holidays: All gazetted public holidays, paid in accordance with HA 2003, ss 44–50; and (d) Bereavement Leave: As per HA 2003, s 69A — 3 days for immediate family, 1 day for any other person. The Employee acknowledges that all accrued holiday pay will be paid out upon expiry of this Agreement in accordance with HA 2003.

KIWISAVER

The Employee is eligible for KiwiSaver membership under the KiwiSaver Act 2006. If the Employee is auto-enrolled and does not opt out within the permitted timeframe, the Employer will make compulsory employer contributions at the applicable statutory rate. The Employee's KiwiSaver contributions will be deducted from remuneration at the rate elected by the Employee.

NOTICE OF TERMINATION BEFORE EXPIRY

If either party wishes to terminate this Agreement before the Expiry Date, they must provide 4 weeks written notice to the other. The Employer may elect to make payment in lieu of notice. The Employer may only terminate before the Expiry Date if there is a genuine ground for doing so, including serious misconduct (ERA 2000, s 103A — test for justification of dismissal). The expiry of this fixed-term Agreement on the Expiry Date does not constitute a dismissal and does not give rise to a personal grievance for unjustified dismissal under ERA 2000.

GOOD FAITH

The parties are required to deal with each other in good faith in accordance with the Employment Relations Act 2000 (ERA 2000, ss 4–6). Each party shall be active and constructive in maintaining a productive employment relationship, responsive and communicative, and not act in a misleading or deceptive manner. The Employer shall provide the Employee with information relevant to their continued employment and an opportunity to be heard before making decisions that affect the Employee's employment.

PERSONAL GRIEVANCE

The Employee has the right to raise a personal grievance under the Employment Relations Act 2000 (ERA 2000, ss 103–112). A personal grievance must generally be raised with the Employer within 90 days of the action giving rise to the grievance (ERA 2000, s 114). Note that a fixed-term employee may raise a personal grievance in relation to matters arising during the fixed term (including unjustified disadvantage or discrimination) but not for unjustified dismissal arising from the natural expiry of a genuine fixed term.

10.

DISPUTE RESOLUTION

Any dispute arising out of or in connection with this Agreement shall first be referred to mediation through Employment New Zealand Mediation Services (ERA 2000, ss 144–156). If mediation does not resolve the dispute within 28 days, either party may refer the matter to the Employment Relations Authority (ERA 2000, s 157).

11.

GOVERNING LAW

This Agreement is governed by the laws of New Zealand, including the Employment Relations Act 2000 (ERA 2000), the Holidays Act 2003 (HA 2003), the Minimum Wage Act 1983 (MWA 1983), and the Privacy Act 2020 (PA 2020). Any dispute not resolved internally shall be referred to the Employment Relations Authority.

12.

INTELLECTUAL PROPERTY

All inventions, developments, improvements, software, designs, methods, processes, and other work product created or developed by the Employee during the fixed term of this Agreement (whether or not during working hours) that relate to the Employer's business or result from tasks assigned by the Employer are the exclusive property of the Employer. The Employee irrevocably assigns all such intellectual property rights to the Employer, including rights under the Patents Act 2013 and the Copyright Act 1994. The Employee shall promptly disclose all such work product to the Employer and execute all documents necessary to give effect to this assignment. This obligation survives the expiry of this Agreement.

13.

CONFIDENTIALITY

The Employee acknowledges that during the fixed term they will have access to Confidential Information of the Employer, including trade secrets, client lists, pricing, financial data, proprietary methods, and strategic plans. The Employee agrees to keep all such information strictly confidential both during and after the fixed term. This obligation survives the expiry of this Agreement and is subject to the Privacy Act 2020 (PA 2020). The Employee may disclose information required by law, provided prompt written notice is given to the Employer.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date first written above.

EMPLOYER

Priya R. Naidoo

Chief Executive Officer

Auckland Waterfront Festival Ltd.

Date: ____________________

EMPLOYEE

Cameron J. O'Sullivan

Date: ____________________

What Is a Fixed-Term Employment Agreement?

A fixed-term employment agreement is an individual employment agreement (IEA) that ends on a specified date, on the completion of a specified project, or on the occurrence of a specified event. It is used for genuine temporary needs — parental leave cover, seasonal work, project-based engagements, and fixed-duration funding — but cannot be used as a substitute for a trial period or to avoid the rights that apply to permanent employees.

Section 66 of New Zealand’s Employment Relations Act 2000 sets out specific requirements for fixed-term agreements. The employer must have genuine reasons based on reasonable grounds for the fixed term, and those reasons must be stated in writing in the agreement. The agreement must also specify how and when the employment will end. If section 66 is not complied with, the employee can require the employer to treat the employment as permanent.

All other requirements for individual employment agreements still apply in New Zealand: section 63A pre-employment process, Holidays Act 2003 entitlements (pro-rated as required), the New Zealand minimum wage, KiwiSaver, and the right to raise a personal grievance. Fixed-term employees are not second-class employees — they have the same statutory rights under New Zealand employment law as permanent employees for the duration of their term.

What's Covered in This Template

Our fixed-term agreement addresses the statutory requirements of section 66 and the full package of standard employment terms.

Parties and Location

Employer (including NZBN) and employee names, start date, and workplace location.

Fixed Term and End Event

The end date, project completion, or specified event that triggers the end of the fixed term.

Genuine Reasons Statement

Written statement of the genuine reasons for the fixed term, as required by section 66(2).

Position and Duties

Job title, reporting line, and a summary of key duties and responsibilities.

Hours of Work

Agreed ordinary hours, days of work, and availability provisions.

Wages or Salary

Rate of pay, payment cycle, and confirmation of Minimum Wage Act 1983 compliance.

Leave (Pro-Rated)

Annual, sick, bereavement, and public holidays pro-rated to the length of the fixed term.

Extension and Early Termination

Process for extending the term, and grounds and notice for early termination (e.g. misconduct).

Confidentiality and IP

Protection of confidential information and assignment of work-related intellectual property.

Problem Resolution

Plain-language explanation of how to raise a personal grievance under section 103 (90-day rule).

How to Create a Fixed-Term Employment Agreement

Generate a compliant, statutorily-sound fixed-term agreement in minutes.

1
Enter Parties and Position
Provide the employer’s and employee’s details, position, duties, and workplace.
2
Define the Fixed Term
Specify the start date and the end trigger — a specific date, project completion, or event.
3
State the Genuine Reasons
Set out in plain English the genuine reasons for the fixed term (e.g. parental leave cover, project funding, seasonal peak).
4
Set Pay, Hours, and Leave
Configure pay, hours, and pro-rated leave entitlements under the Holidays Act 2003.
5
Review and Provide for Signature
Check the section 66 statement, give the employee time to seek advice (section 63A), then collect signatures.

Legal Considerations

Fixed-term employment is tightly regulated and the most common error is non-compliance with section 66.

This template is for informational purposes only and does not constitute legal advice. For complex projects, successive fixed terms, or funding-contingent roles, take advice from a New Zealand employment lawyer.

Reviewed for New Zealand law

Genuine Reasons Test under Section 66

Section 66 of New Zealand’s Employment Relations Act 2000 requires the employer to have genuine reasons based on reasonable grounds for specifying that the employment will end in a particular way. The Act expressly provides that a fixed term cannot be used to establish the suitability of the employee for permanent employment, to exclude or limit the rights of the employee under the Act, or to prevent or limit operations of the Act. The reasons must be stated in writing in the agreement.

Consequences of Non-Compliance

If section 66 is not complied with, the employee can require the employer to treat the employment as permanent. The New Zealand Employment Relations Authority and Employment Court have repeatedly struck down fixed-term clauses where genuine reasons were absent or inadequately recorded. See, for example, the line of authority starting with Goodwin v Howick Gymnastic Club [2006] ERNZ 64.

Successive Fixed Terms

Stringing together multiple fixed-term agreements for the same role carries high risk. The Authority will look at the substance of the arrangement and may treat the employment as effectively permanent. Genuine seasonal work or genuinely project-based work can justify successive fixed terms, but purely administrative "rolling" fixed terms typically cannot.

Holidays Act Entitlements

Fixed-term employees accrue annual holidays in the same way as permanent employees. For short fixed terms where the employee will not complete 12 months (e.g. 8% pay-as-you-go is permitted only for genuinely intermittent or short fixed-term work under section 28 of the Holidays Act 2003), careful calculation is required. Public holidays, sick leave, and bereavement leave apply on the same basis as for permanent employees.

Frequently Asked Questions

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