Employment agreement essentials

We offer Fixed Fee Employment Agreements and Employment Handbooks. 

Contact us on (09) 214 5780 for information about our Fixed Fee Employment Agreements and Employment Handbooks.  Please see below for information on individual employment agreements. 

The Employment Relations Act 2000 sets out a number of requirements for bargaining for individual employment agreements.  When bargaining for an individual employment agreement, employers must:

a) Provide the employee a copy of the proposed agreement;
b) Advise the employee that he/she is entitled to seek independent advice about the agreement;
c) Give the employee a reasonable opportunity to seek that advice; and
d) Consider any issues that the employee raises and respond to them.

Employment agreements must be in writing and must contain the following information:

  • the names of the parties
  • a description of the work to be performed
  • the location
  • hours of work
  • remuneration
  • a ‘plain language’ explanation of how to resolve employment relationship problems, including advice that under the Act personal grievances must be raised within 90 days
  • an ‘employee protection provision’ which details the process to be followed in a restructuring

 

An employment agreement must not contain anything which is contrary to law or inconsistent with the Employment Relations Act 2000.

From 06 May 2019, employers will 20 or more employees cannot enter into employment agreements that include trial periods.  However, they can still use probationary periods. 

Under the Holidays Act 2003, employers must inform employees of their entitlements under that Act and that they can obtain further information about those entitlements from a union (if they are a member) or the Department of Labour.  This information must be given to the employee at the same time that the employee enters into the employment agreement.

Employers are also required to retain a copy of the employment agreement and provide it to the employee on request.

Further obligations may apply if there is a collective agreement in place.

To protect their business, it is sensible for employers to include additional clauses in their employment agreements.  Desirable clauses include the following:

 

 

 

 

 

 

For more information on individual employment agreements, please contact us on:  (09) 214 5780

*Some of these clauses may also be suitable for employees who are not directors or ‘senior’ employees but have access to confidential information and/or the ability to influence clients.

**Suitable for company appointed directors only.

Disclaimer:  The information in the Knowledge Centre is not intended to be and does not replace legal advice.  It is provided free of charge for information purposes only.  Reasonable effort has been made to ensure the information is correct and up to date. However, no responsibility for its accuracy or for relying on it is assumed by the author or Just Employment Limited.  You are strongly advised to obtain specific advice from a lawyer about your case or matter.