What to put in employment agreements
Agreements must be in writing where there is no collective agreement
Under the Employment Relations Act 2000, where there is no collective agreement the individual employment agreement must be in writing and must include:
- the names of the employer and the employee (to make clear who are the parties to the agreement)
- a description of the work (to make clear what the employee is actually expected to do)
- an indication of where the employee is to work
- an indication of arrangements relating to working hours
- wage rates or salary
- a plain language explanation of services is available to help sort out employment relationship problems.
- a requirement to pay at least time and a half for work on a public holiday
- for most employees, an employment protection provision that will still apply if the employer's business is sold, or transferred or the employee's work is contracted out.
Collective agreements and their relationship to individual agreements
The requirements for collective agreements are set out in the collective bargaining section of our website.
Employers must not undermine collective bargaining or collective agreements by automatically passing on collectively bargained terms and conditions to employees not covered by that collective bargaining or agreement.
For more information see http://www.ers.dol.govt.nz/factsheets/undermining_collectives.html
Minimum rights in legislation
Some minimum terms and conditions of employment are imposed by legislation. These terms still apply, even if they have not been written into the collective or individual employment agreement. Employers and employees cannot agree to do away with any of these entitlements. They can, however, agree to better provisions if they wish.
The minimum legislative requirements cover the following:
You can get more detailed information about minimum employment rights on the Employment Relations website (www.ers.dol.govt.nz/relationships).
What must not be in an employment agreement?
Employment agreements must not include anything that goes against any law. Unlawful provisions in an employment agreement cannot be enforced.
What other issues can appear in individual employment agreements?
There are a number of optional matters that are often found in employment agreements. These are issues that employers and employees may wish to include in the agreement or bargain about. The Department of Labour’s website offers an Employment Agreement Builder (www.ers.dol.govt.nz/relationships/builder) that enables you to develop your own agreement..
Holidays
There are holiday and leave rights that apply whether or not they are included in an employment agreements. The employer and employee can agree to apply better provision overall, but cannot agree to reduce any provision. Our Holidays Online Tool helps calculate entitlements for public holidays, sickness and bereavement leave. See http://www.ers.govt.nz/holidays-online-tool/default.aspx
Annual holidays
Employees are entitled by law to a minimum of four weeks' paid annual holidays after being in the job for a year, or to holiday pay for periods of employment less than one year.
Public holidays
The 11 public holidays in the Holidays Act apply unless the employer and employee agree to substitute other days.
If employees work on public holidays they must be paid at least time and a half for hours worked on a public holiday. If it is a day on which they would otherwise have worked they are also entitled to another day off as an alternative holiday (a day in lieu).
Sick leave
Employees are entitled by law to five days' sick leave after being in the job for six months, and for each subsequent twelve months. If the leave is not taken, it can accumulate up to a maximum of 20 days.
Bereavement leave
Employees are entitled by law to three days' bereavement leave after being in the job for six months, on the death of an immediate family member.
Additionally, the employee is entitled to one days' bereavement leave where the employer accepts that the employee has suffered a bereavement. |
