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Employment Agreement
I need a junior employment agreement for a graduate with 1 year of industry experience, who will be part of a rotational program to identify expertise aligning with their skills. The agreement should include statutory leave, exclude stock options, and specify a 6-month probation period with a 1-week notice, transitioning to a 1-month notice period thereafter.
What is an Employment Agreement?
An Employment Agreement is a legally binding contract between an employer and employee that sets out the key terms and conditions of their working relationship. It forms the foundation of employment in New Zealand, as required by the Employment Relations Act 2000.
The agreement spells out essential details like pay rates, work hours, leave entitlements, and job duties. It also covers important protections for both parties, including notice periods, confidentiality requirements, and dispute resolution processes. Kiwi employers must provide written agreements to all employees and keep signed copies on file.
When should you use an Employment Agreement?
Every time you hire someone in New Zealand, you need an Employment Agreement in place before they start work. This includes full-time, part-time, fixed-term, and casual employees - it's a legal requirement under NZ employment law.
Use this agreement when bringing on new staff, changing someone's role or conditions, or updating terms to reflect new workplace policies. It's especially important when offering specialized roles, handling sensitive information, or setting up unique working arrangements like flexible hours or remote work. Having clear agreements helps prevent misunderstandings and protects both parties.
What are the different types of Employment Agreement?
- Pre Employment Agreement: Used before formal employment begins, outlining conditional terms and probationary periods
- Dual Employment Agreement: For employees working across two roles or departments within the same organization
- Truck Driver Employment Agreement: Specialized terms for transport workers, including driving hours and vehicle responsibilities
- Real Estate Employment Agreement: Tailored for real estate agents, covering commission structures and property dealings
- Joint Employment Agreement: For situations where multiple employers share responsibility for one employee
Who should typically use an Employment Agreement?
- Employers: Company owners, HR managers, and business leaders who create and offer Employment Agreements to protect their organization's interests
- Employees: Workers who review, negotiate, and sign these agreements before starting new roles or accepting changed terms
- HR Professionals: Team members who manage, update, and maintain Employment Agreements across the organization
- Employment Lawyers: Legal experts who draft, review, or modify agreements to ensure compliance with NZ law
- Union Representatives: Officials who negotiate collective employment terms and review individual agreements for union members
How do you write an Employment Agreement?
- Employee Details: Gather full name, contact information, role title, start date, and reporting relationships
- Role Specifics: Document key responsibilities, work location, hours, and any special requirements or qualifications
- Compensation Package: Define salary, payment frequency, bonuses, allowances, and any performance-based incentives
- Leave Entitlements: Calculate annual leave, sick leave, and public holiday arrangements under NZ law
- Special Terms: Note any unique conditions like intellectual property rights, non-compete clauses, or confidentiality requirements
- Template Selection: Use our platform to generate a legally compliant agreement that includes all mandatory NZ employment terms
What should be included in an Employment Agreement?
- Parties: Full legal names and addresses of both employer and employee
- Position Details: Job title, duties, work location, and hours including overtime arrangements
- Compensation Terms: Salary/wage rate, payment frequency, and any additional benefits or allowances
- Leave Provisions: Annual, sick, bereavement, and public holiday entitlements per NZ law
- Notice Periods: Required notice for termination from either party and process for ending employment
- Dispute Resolution: Clear process for handling employment disputes or grievances
- Signatures: Space for both parties to sign and date, making the agreement legally binding
What's the difference between an Employment Agreement and an Agency Agreement?
An Employment Agreement differs significantly from an Agency Agreement in several key ways. While both establish working relationships, their legal nature and obligations vary considerably under New Zealand law.
- Employment Status: Employment Agreements create an employer-employee relationship with ongoing obligations, while Agency Agreements establish independent contractor relationships where the agent works autonomously
- Legal Protections: Employees receive statutory benefits like holiday pay and sick leave; agents don't qualify for these employment rights
- Control and Direction: Employers can direct daily work and set specific hours; agents maintain control over how and when they complete tasks
- Tax Treatment: Employment Agreements involve PAYE tax deductions; agents handle their own tax obligations as independent businesses
- Liability: Employers bear responsibility for employee actions; agents typically carry their own liability and insurance
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