Employment agreement essentials

• Published date: 17 May 2021
• Subject Matter: Employment and HR, Contract of Employment, Employee Benefits & Compensation, Employee Rights/ Labour Relations
• Law Firm: Gibson Sheat Lawyers
• Author: Ms Nikki Farrell

An employment agreement is an essential document between the employer and the employee. They set up the fundamental terms and conditions of the employment relationship. Employers need to ensure they get the agreements right.

All employment agreements should be in writing and they must contain all of the following clauses (see s 65 of the Employment Relations Act 2000):

1. Names of the employee and the employer concerned
2. A description of the work to be performed by the employee
3. The location of the place of work
4. The hours to be worked
5. The wage or salary payable to the employee
6. An explanation in plain language of how to resolve any employment relationship dispute, including a reference to the 90 day period for raising personal grievances under section 114.

The employment agreement must not contain anything contrary to law or inconsistent with the Employment Relations Act.

All employment agreements must be signed before an employee starts work.

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