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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.
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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.
Our fixed-term agreement addresses the statutory requirements of section 66 and the full package of standard employment terms.
Employer (including NZBN) and employee names, start date, and workplace location.
The end date, project completion, or specified event that triggers the end of the fixed term.
Written statement of the genuine reasons for the fixed term, as required by section 66(2).
Job title, reporting line, and a summary of key duties and responsibilities.
Agreed ordinary hours, days of work, and availability provisions.
Rate of pay, payment cycle, and confirmation of Minimum Wage Act 1983 compliance.
Annual, sick, bereavement, and public holidays pro-rated to the length of the fixed term.
Process for extending the term, and grounds and notice for early termination (e.g. misconduct).
Protection of confidential information and assignment of work-related intellectual property.
Plain-language explanation of how to raise a personal grievance under section 103 (90-day rule).
Generate a compliant, statutorily-sound fixed-term agreement in minutes.
Provide the employer’s and employee’s details, position, duties, and workplace.
Specify the start date and the end trigger — a specific date, project completion, or event.
Set out in plain English the genuine reasons for the fixed term (e.g. parental leave cover, project funding, seasonal peak).
Configure pay, hours, and pro-rated leave entitlements under the Holidays Act 2003.
Check the section 66 statement, give the employee time to seek advice (section 63A), then collect signatures.
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Free to download. Vector text, embedded fonts, statute citations baked in. Print, sign, file. Ready for any signing flow including electronic signature.
Continue editing in Word after download. Add custom clauses, reuse the template for similar agreements, or share with a colleague for collaborative review.
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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
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.
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.
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.
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.
Create a section 66–compliant New Zealand fixed-term employment agreement in minutes. Genuine reasons captured, rights preserved, risks managed.
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