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Employee Payment Agreement for New Zealand

Employee Payment Agreement Template for New Zealand

A comprehensive legal agreement that establishes the terms and conditions of payment between an employer and employee in New Zealand. This document outlines the basic salary or wage, payment frequency, methods of payment, applicable deductions, leave payment arrangements, and other compensation-related terms in compliance with New Zealand employment law, including the Employment Relations Act 2000, Wages Protection Act 1983, and other relevant legislation. It serves as a crucial component of the employment relationship by providing clarity and certainty regarding all aspects of employee compensation.

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Employee Payment Agreement

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What is a Employee Payment Agreement?

The Employee Payment Agreement is essential for establishing clear and legally compliant payment arrangements between employers and employees in New Zealand. This document should be used whenever a new employment relationship is established or when existing payment terms need to be formally documented or updated. It encompasses all aspects of employee compensation, including base salary or wages, payment methods, statutory deductions, leave entitlements, and additional benefits, ensuring compliance with New Zealand employment legislation such as the Employment Relations Act 2000 and the Wages Protection Act 1983. The agreement provides security for both parties by clearly documenting payment obligations and expectations, helping prevent disputes and ensuring statutory compliance.

What sections should be included in a Employee Payment Agreement?

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Brief context about the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Base Salary/Wage: Details of the employee's basic pay rate, including frequency of payment

5. Payment Method: Specifics about how and when payments will be made

6. Hours of Work: Standard hours for which the payment applies

7. Deductions: Mandatory and agreed deductions including PAYE, KiwiSaver, and other statutory deductions

8. Leave Entitlements and Payment: How various types of leave will be paid, including annual, sick, and public holiday leave

9. Record Keeping: Requirements for maintaining payment and time records

10. Termination Payments: Treatment of final pay and outstanding entitlements

11. Variation: Process for changing any payment terms

12. Governing Law: Confirmation that the agreement is governed by New Zealand law

What sections are optional to include in a Employee Payment Agreement?

1. Overtime Rates: Include when overtime pay is applicable to the role

2. Allowances: Include when specific allowances (e.g., tool, vehicle, uniform) are part of the compensation

3. Commission Structure: Include for sales roles or positions with performance-based pay components

4. Bonus Arrangements: Include when discretionary or performance bonuses are part of the package

5. Shift Premiums: Include for roles with shift work and associated additional payments

6. Higher Duties Allowance: Include when employee may temporarily perform higher-ranked duties

7. Travel and Expense Reimbursement: Include when role requires regular travel or expense claims

8. Salary Sacrifice Arrangements: Include when offering salary sacrifice options

What schedules should be included in a Employee Payment Agreement?

1. Schedule 1 - Pay Rate Details: Detailed breakdown of pay rates, including any loadings or special rates

2. Schedule 2 - Commission Calculator: Formula and examples for calculating commission (if applicable)

3. Schedule 3 - Allowance Schedule: Detailed list of allowances and conditions for payment

4. Schedule 4 - Bonus Calculation Method: Details of how bonuses are calculated and timing of payments

5. Appendix A - Timesheet Template: Standard template for recording hours worked

6. Appendix B - Expense Claim Form: Standard template for submitting expenses for reimbursement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Publisher

Ƶ

Document Type

Payment Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions

































Clauses



























Relevant Industries

Professional Services

Retail

Manufacturing

Technology

Healthcare

Education

Construction

Hospitality

Financial Services

Agriculture

Mining

Transportation

Media and Entertainment

Public Sector

Non-Profit Organizations

Relevant Teams

Human Resources

Finance

Legal

Payroll

Operations

Administration

Management

Compliance

Relevant Roles

Chief Executive Officer

General Manager

Department Manager

HR Manager

Financial Controller

Sales Representative

Administrative Assistant

Customer Service Representative

Production Worker

Technical Specialist

Project Manager

Research Scientist

Marketing Coordinator

Operations Manager

Software Developer

Retail Associate

Warehouse Supervisor

Account Manager

Executive Assistant

Field Service Technician

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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