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Employment Relations: Employment agreement builder

Section 1 : The Parties

This is the first clause of any Individual Employment Agreement. The names of the employer and employee must be entered in full, and must appear in the final agreement.

Note: When completing the agreement it is important to use the correct legal title of the Employer and the full name of the Employee.

Individual Employment Agreement
 
The parties to this employment agreement are:
1. , the "Employer"; and
2. , the "Employee".

Section 2 : The Position and Duties

You will notice that some of the clauses on this page are red, and others are brown. The red clauses (in this case, Position and Duties) must appear in your final agreement.

Brown clauses (in this case, Reporting, Objectives and Review) are voluntary. They do not necessarily have to appear in your agreement. However, the more specific an agreement is, the better defined the relationship will be for both employer and employee.

Please take the time to read all clauses to check whether they would improve the information available to both the employer and employee.

It is mandatory for the agreement to contain a clause mentioning the position.

Position
 
The Employee is being employed as .

Your agreement must contain a clause describing the duties. The following two options mention an attached job description; don’t forget to attach one (or if it’s short, add the description into this clause once you have saved it).

Duties as set out in the job description
 
The Employee shall perform the duties set out in the Job Description attached to this agreement.
Duties as set out in the job description which may be modified from time to time by the Employer
 
The Employee shall perform the duties set out in the Job Description attached to this agreement. These duties may be modified and updated by the Employer from time to time following agreement with the Employee. The Employee also agrees to perform all other reasonable duties and comply with reasonable instructions issued by the Employer.


The next four clauses are voluntary. You may choose to include them if you wish.

Reporting
 
The Employee shall report to or to any other representative of the Employer designated from time to time by the Employer.
Performance Objectives
 
The Employer shall, in consultation with the Employee, set the Employee objectives at least on an annual basis. These objectives shall be taken into account by the Employer when assessing the employee’s performance.
Performance reviews
 
The Employer shall conduct a performance review of the Employee on at least an annual basis. This review shall be taken into account in any salary reviews.
Secondment
 
In the event the Employer considers that a secondment (such as to a client or customer or project) would be in the best interests of the Employer, the Employee shall comply with all reasonable requests to carry out that secondment.

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Section 3 : Nature of the Agreement

An agreement's nature may be defined as:

  • permanent, where an employee is employed for an indefinite duration;
  • fixed term, where an employee is employed for a specific time period; or
  • casual, where the employee is only expected to work from time to time.

Before a fixed term agreement can be agreed on there must be a genuine business reason for the fixed term, such as the temporary absense of an existing employee or a specified project to be undertaken.

Individual Agreement of Ongoing and Indefinite Duration
 
This Employment Agreement is an individual employment agreement entered into under the Employment Relations Act 2000. The employment shall commence on and shall continue until either party terminates the agreement in accordance with the terms of this agreement. The clauses in this agreement may be varied or updated by agreement between the parties at any time.
Fixed Term Individual Employment Agreement
 
...The parties agree that this is a fixed term employment agreement. This agreement will commence on , and will end on ... The Employer has genuine reasons based on reasonable grounds for specifying that the employment agreement is to end at this time, namely ...
Casual Individual Employment Agreement (Intermittent)
 
...The parties to this agreement agree that the nature of the relationship is a casual "as required" employment relationship... the Employee agrees to take reasonable steps to be available for work during ...
Casual Individual Employment Agreement (Fixed Period)
 
...The parties to this agreement agree that the nature of the relationship is a casual "as required" employment relationship... the Employee agrees to take reasonable steps to be available for work during . The duration of this casual agreement is as follows:

(i)     The Employer and the Employee are entering into the casual agreement for a fixed period. This period shall start on and shall end on . The reason for the fixed period is .

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Section 4 : Obligations of the Relationship

The obligations of the employer and employee are voluntary clauses, but they can be helpful and beneficial to have in your agreement to determine the roles of each.

Obligations of the Employer
 
The Employer shall:
(i)     Act as a good employer in all dealings with the Employee;
(ii)    Deal with the Employee and any representative of the Employee in good faith in all aspects of the employment relationship;
(iii)   Take all practicable steps to provide the Employee with a safe and healthy work environment.
Obligations of an Employer in the Public Sector
 
The Employer shall:
(i)     Act as a good employer in all dealings with the Employee. A good employer is one who operates a personnel policy which is consistent with the fair and proper treatment of its employees in all aspects of their employment;
(ii)    Deal with the Employee in good faith in all aspects of the employment relationship;
(iii)   Take all practicable steps to provide the Employee with a safe and healthy work environment.
I do not require this clause in my agreement.


Obligations of the Employee
 
The Employee shall:
(i)     Comply with all reasonable and lawful instructions provided to them by the Employer;
(ii)    Perform their duties with all reasonable skill and diligence;
(iii)   Conduct their duties in the best interests of the Employer and the employment relationship;
(iv)   Deal with the Employer in good faith in all aspects of the employment relationship;
(v)    Comply with all policies and procedures (including any Codes of Conduct) implemented by the Employer from time to time.
(vi)   Take all practicable steps to perform the job in a way that is safe and healthy for themselves and their fellow employees.

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Section 5 : Place of Work

An agreement must contain a clause indicating where the work is to be performed.

Fixed Place of Work
 
The parties agree that the Employee shall perform their duties at .
Several Locations
 
The parties agree that the Employee shall perform their duties at any of the following locations , as directed from time to time by the Employer.
Flexible Location
 
The parties agree that the Employee shall perform their duties at , and at any other reasonable location to which they may be directed from time to time by the Employer.

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Section 6 : Hours of Work

There are different options available to you in this section based on the nature of the agreement as defined in Section 3. Two sets of options are available. One for casual workers and the other for permanent or fixed term staff.

It is mandatory for the agreement to contain a clause that provides an indication of the employee’s hours of work. An option from the list below must be included in the agreement.

Full Time Hours of Work
 
The employee’s hours of work shall be hours per week on , between the hours of .
Full Time Hours with an obligation to perform overtime as necessary but without extra payment
 
The employee’s normal hours of work shall be hours per week, between the hours of on . The Employee may also be required to perform such overtime as may be reasonably required by the Employer in order for the Employee to properly perform their duties. The employee’s salary fully compensates them for all hours worked.
Full Time Hours with an obligation to perform overtime as necessary with an entitlement to extra pay
 
The employee’s normal hours of work shall be hours per week, between the hours of on . The Employee may also be required to perform such overtime as may be reasonably required by the Employer in order for the Employee to properly perform their duties. Where extra hours are performed the Employee shall be entitled to an overtime payment as set out in the wages clause below.
Part Time Hours
 
The parties agree that the Employee is being employed to perform duties on a part time basis. The hours and days on which the Employee shall work are as follows: .
Part Time Hours with the obligation to perform overtime as necessary with an entitlement to extra pay
 
The employee’s normal hours of work shall be hours per week, between the hours of on . The Employee may also be required to perform such overtime as may reasonably required by the Employer in order for the Employee to properly perform their duties. Where extra hours are performed the Employee shall be entitled to overtime pay as set out in the wages clause below.
Shift Work
 
The parties agree that the Employee is being employed to perform duties in accordance with the shift work arrangement of the Employer. The shift arrangement applies to the Employee in the following manner:
Rostered Hours with no minimum hours of work to be provided
 
The parties agree that the employee’s hours of work shall be set by the Employer in advance in accordance with a roster. Unless there are exceptional circumstances, the Employee shall be given at least 7 days notice of a new roster. In setting the roster the Employer shall provide the Employee with consecutive days off within a reasonable period.
Rostered Hours with a minimum number of hours of work to be provided
 
The parties agree that the employee’s hours of work shall be set by the Employer in advance in accordance with a roster. Unless there are exceptional circumstances, the Employee shall be given at least 7 days notice of a new roster. The parties agree that the Employee shall be provided with a minimum of hours work per . In setting the roster the Employer shall provide the Employee with consecutive days off within a reasonable period.
Casual Employment with no minimum number of hours of work
 
The parties agree that because the Employee is being employed on an as required basis, the Employee has no fixed hours of work, nor any minimum number of hours of work. The hours of work and days to be worked will be as agreed between the Employer and Employee from time to time. The Employee shall take all reasonable steps to be available when required.
Casual Employment with a minimum number of hours of work guaranteed but no minimum hours for any one period of work
 
The parties agree that because the Employee is being employed on an as required basis, the Employee has no fixed hours of work. However, the Employer agrees to offer to the Employee at least hours per week. The Employee shall take all reasonable steps to be available when required.
Casual Employment with a minimum number of hours of work guaranteed and a minimum period for any one session of work
 
The parties agree that because the Employee is being employed on an as required basis, the Employee has no fixed hours of work. However, the Employer agrees to offer to the Employee at least hours per . The Employer also agrees that where the Employee is offered work, the period of any one session of work shall not be less than hours. The Employee shall take all reasonable steps to be available when required.
Flexible or Glide Time
 
The parties agree that the Employee is required to perform of hours of work per , and to be at the place of work between the core hours of on . Provided these hours of work are performed, the Employee may adopt flexibility in their start and finish times each day. The parties agree, however, that the Employer may, after consultation with the Employee, modify this arrangement if this is in the best interests of the employer’s operations.
Piece Work without set hours
 
The parties agree that the Employee will be available on an as required basis to meet the deadlines for delivery of items, with no fixed hours of work.
Piece Work with set hours and delivery times
 
The parties agree that the employee will be available on site between the hours of on , and will deliver their to no later than .

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Section 6 : Hours of Work - Breaks

The following clauses are voluntary.

Lunch Breaks
 
The Employee shall be entitled to a lunch break on each working day of employment, of , to be taken at or such other time as the parties agree from time to time.
Meal Breaks
 
The parties agree that after hours of work, the Employee shall be entitled to a meal break of not less than .
I do not require this clause in my agreement.


Tea Breaks
 
The parties agree that the Employee shall be entitled to a tea break of at or after .


Variation to Hours of Work
 
The employee’s hours of work may be varied as follows:
(i)     By mutual agreement between the Employee and the Employer; or
(ii)    If agreement cannot be reached, by the Employer, following consultation with the Employee, provided that the employee’s minimum hours of work are not reduced below hours and that any increase in hours of work is reasonable.

When seeking to vary the employee’s hours, the Employer shall act reasonably, and shall take into account the employee’s personal circumstances and commitments.

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Section 7 : Payment

There are a number of options available for describing how the wages or salary of an employee are set. Read through the following options and select the one most appropriate to your situation.

Note: Should the hourly rate clause be chosen, the law requires employees who are 16 years of age or older to be paid at least a minimum wage set by law. The same applies to people who are involved in recognised industry training. Information on these rates, and how they apply, is available in the New Zealand Department of Labour website's pay section.

Should the piece work or commission clauses be chosen, the piece rate (or commission rate) must be set at a level where an employee can reasonably be expected to earn at least the minimum wage.

Annual Salary
 
The employee’s salary shall be $ per annum, which shall be paid on .
Hourly Rate
 
The Employee shall be paid according to an hourly rate which shall be $ per hour. The employee’s pay shall be paid on .
Wages Paid in accordance with a performance pay process/structure
 
The parties agree that the employee’s salary shall be determined in accordance with the following scale , the Employee shall commence employment at and the employee’s progression through that scale shall be dependent upon . The employee’s pay shall be paid on .
Commission
 
The Employee shall be paid on a Commission basis, as follows . The employee’s pay shall be paid on .
Piece Work Payment Rate
 
The Employee shall be paid on a piece work basis, which shall depend on the number of completed by the Employee. The piece rate per completed unit of work shall be $. The employee’s pay shall be paid on .
Variable Piece Work Payment Rate
 
The Employee shall be paid on a piece work basis, which shall depend on the number of completed by the Employee. The piece rate per unit of work shall be $. The unit of work of the piece rate may be varied by agreement in advance between the Employer and the Employee depending on the circumstances, such as . The employee’s pay shall be paid on .

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Section 7 : Payment - Commission and Bonuses

In addition to an employee’s salary or wage, a commission, bonus, or additional incentive may be applied to the agreement to recognise the employee’s performance. A general selection is provided below.

Commission
 
The Employee shall be entitled to receive Commission in addition to their base salary or hourly rate of on the following basis . The employee’s pay shall be paid on .


Bonus for achieving objectives
 
The Employee shall be eligible to receive a bonus in provided the Employee achieves in the reasonable opinion of the Employer the objectives agreed between the Employer and the Employee at the beginning of that period.
Bonus at the employer’s Discretion
 
The parties agree that the Employee may, at the employer’s sole discretion, be paid a bonus at the end of .
I do not require this clause in my agreement.


Service Payment
 
The Employee shall be entitled to receive an increase in their salary/wages upon the achievement of years continuous service with the Employer. This increase shall be as follows, and will be in addition to any agreed increases allocated under any salary review process:



Payments Recognising Qualifications or Skills Acquired on the Job
 
The Employee shall be entitled to receive the following payments, upon achievement of the following qualifications/skills:



Review
 
The Employer agrees to review the employee’s salary/wages on the 12 month anniversary of this employment agreement and every 12 month anniversary thereafter. The parties agree that the Employee shall not have any necessary entitlement to an increase, but, the Employer agrees to conduct this review in good faith and to consult with the Employee during the review.

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Section 7 : Payment - Allowances, Penal Rates, Overtime and Expenses

There are a range of allowances that may be relevant to different employment relationships. Examples of allowances that may be relevant are: Tools; Clothing; Uniform; Meals; Travel; etc.

Where an allowance is made to recognise an employee for working on a particular day of the week (say Sunday), or a public holiday, this is more appropriately described as a penal rate and

  • penal rates for working on particular days of the week should be dealt with in 7.10 below
  • penal rates for working on a public holiday should be dealt with in 8.4 below.
Allowance Clause (1)
 
The Employee shall be paid a allowance of per , which shall be paid to the Employee on a basis.


Allowance Clause (2)
 
The Employee shall be paid a allowance of per , which shall be paid to the Employee on a basis.


Allowance Clause (3)
 
The Employee shall be paid a allowance of per , which shall be paid to the Employee on a basis.


In addition to allowances, there are certain stipulations that may be put in place in the event that situations arise. Penal rates and overtime rates are an example. The employee should be informed in advance if any of these are likely to apply.

As well, there may be an arrangement set out between the parties covering expenses, and how they are to be reimbursed.

If you want to include a penal rate in your agreement to recognize an employee for working on a particular day (say a Sunday) use this penal rates clause. Do not, however, use this clause for penal rates on public holidays. Penal rates on public holidays should be dealt with in 8.4 below.

Penal Rates
 
The parties agree that the Employee shall be entitled to penal rates for working on . Where penal rates are payable, they shall be paid at the following rate: .


Overtime
 
The parties agree that where the Employee works requested overtime, the Employee shall be entitled to payment for each hour of overtime at the following rate: .


Reimbursement of Expenses
 
The Employee shall be entitled to reimbursement by the Employer of all expenses reasonably and properly incurred by the Employee in the performance of their duties, provided the Employee produces appropriate receipts to the Employer when requesting reimbursement.


Reimbursement of Travel and Accommodation Expenses
 
The Employee may be required to travel from time to time as part of their duties. The Employer shall reimburse the Employee for their reasonable work related travel and accommodation costs upon production of appropriate receipts.

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Section 8 : Holidays and Leave - Annual Leave and Holiday Pay

Under the Holidays Act, a full-time employee is entitled to a minimum of three weeks of paid annual leave on the completion of 12 months continuous service. If it is agreed, an employer may wish to grant terms more favourable than the Holidays Act (i.e. four weeks), but the number may not drop below the minimum.

On commencing employment or where a work pattern changes during the year (i.e. going from part-time to full-time work) the parties should agree how the entitlement to the three weeks’ leave is provided. Where a new agreement is reached, it is strongly advisable to record it in writing, and clauses are suggested below that reflect common methods of describing how the three weeks will be calculated.

Short Form Clause on Annual Leave as set out in the Holidays Act
 
The Employee shall be entitled to paid annual leave of three weeks per year after 12 months continuous employment with the Employer, in accordance with the Holidays Act.
Short Form Clause on Annual Leave which is more favourable than the entitlement in the Holidays Act
 
The Employee shall be entitled to weeks annual leave per year...
Longer Form Clause on Annual Leave reflecting the entitlements in the Holidays Act
 
...After 12 months continuous employment with the Employer the Employee shall be entitled to 3 weeks annual leave for that year, and to 3 weeks for each subsequent period of 12 months continuous employment...
Longer Form Clause on Annual Leave which is more favourable than the entitlements in the Holidays Act
 
...The Employee shall be entitled to weeks annual leave for each 12 months of service...
I do not require this clause in my agreement.


The "Pay as you go" option for casual employees may be used in two circumstances:
1.   Where the employees work pattern is so irregular that the concept of three weeks away from work is difficult to apply;
2.   Where the employee is both casual and on a fixed term agreement of less than 12 months.

This clause should not be used where a regular employment pattern can emerge (For example, a restaurant worker who is available for peak customer levels and overtime comes to work regularly on a Friday/Saturday night, but also occasionally on other nights).

If you decide to use the "pay as you go" option, a clause such as the one below should be included in the agreement.

Note: The minimum payment in lieu of annual holidays must be at least an extra 6%.

"Pay As You Go" Holiday Pay for genuinely casual employees
 
The Employee is being employed to perform work on a casual as required basis. The Employer shall, instead of paying the Employee during any periods of annual leave, pay the employee’s holiday pay at the same time as their salary payments. The amount of holiday pay is per hour of work, which shall be paid less tax, at the same time as the employee’s salary payments. The employee’s pay slip will identify the employee’s base hourly rate, and the separate holiday pay.


The clauses below are specific to fixed term employees, defined back in section 3. Nature of the Agreement. If the period of the fixed term agreement extends beyond 12 months or it is determined that the work is not genuinely fixed term, the "as you go" option cannot be used, and the employee would be entitled to paid holidays regardless of its inclusion.

Where the employee has been recently covered by an earlier fixed term agreement, it is wise to check that their employment is genuinely fixed term in nature.

Holiday Pay for Employees who are on genuine fixed term agreements of less than 12 months duration - where the Employee is to be provided with paid annual leave
 
The Employee shall, during their fixed term agreement be provided with days paid annual leave to be taken at a time agreed to by the parties, or if agreement cannot be reached, as directed by the Employer having been given at least 14 days notice.
Holiday Pay for Employees who are on genuine fixed term agreements of less than 12 months duration - where the holiday pay is paid on an "As You Go" basis
 
The parties agree that the Employer shall, instead of paying the Employee during any periods of annual leave, pay the employee’s holiday pay at the same time that the Employee is paid their salary payments. The amount of holiday pay is per hour of work, which shall be paid less tax, at the same time as the employee’s salary payments. The employee’s pay slip will identify the employee’s base hourly rate, and the separate holiday pay.
I do not require this clause in my agreement.

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Section 8 : Holidays and Leave - Public Holidays and On-Call

Your agreement must contain a clause pertaining to payment on public holidays. It can be as simple as stating the pay rate on public holidays (which section 50 of the Holidays Act requires to be at least time-and-a-half), or go so far as to define which particular holidays the employee is entitled to take time off (i.e. Rosh Hashannah, rather than New Year’s Day).

The Holidays Act entitles employees to 11 public holidays per year.

In the event of the Public Holidays other than the days set out in the Holidays Act clauses: These provisions can be used where the employer and employee agree to different dates on which to celebrate public holidays. It cannot be used in a way that would reduce the leave that the employee would have received had the traditional holidays been celebrated.

Payment for work on a Public Holiday
 
The employee shall be entitled to be paid for the time actually worked on a Public Holiday at the rate of time and a half of their relevant daily pay.
Public Holidays as set out in the Holidays Act, with the ability to require the Employee to work on a public holiday
 
The employee shall be entitled to 11 public holidays per year, in addition to annual leave.
Public Holidays as set out in the Holidays Act, and where the Employer does not have the ability to require the employee to work on a public holiday
 
...The Employer may ask the Employee to work on a public holiday, but the Employee may at their discretion decline to work on that day...
Public Holidays other than the days set out in the Holidays Act with the ability to require the employee to work on the holiday
 
The Employee and Employer agree that instead of the Employee being entitled to the 11 public holidays per year set out in the Holidays Act, the Employee shall be entitled to 11 days holidays on the following days: ...
...The Employer shall be entitled to require the Employee to work on one or more of the days identified as a holiday...
Public Holidays other than those set out in the Holidays Act, and where the Employer does not have the ability to require the Employee to work on a public holiday
 
The Employee and Employer agree that instead of the Employee being entitled to the 11 public holidays per year set out in the Holidays Act, the Employee shall be entitled to 11 days holidays on the following days: ...
...the Employee may at their discretion decline to work on that day...


The following two clauses pertain to holiday pay in specific reference to on call employees.

On Call on Public Holiday that would otherwise have been a working day for the Employee
 
The Employer may require that the Employee be on call on a public holiday that would otherwise have been a working day for the Employee. Where this occurs, the entitlement to payment is as follows:

(i)    If the employee is called out, the employee is entitled to payment (as detailed in the 'Payment for work on a public holiday' clause of this agreement) plus a full day’s paid alternative holiday
(ii)    If the Employee is required to restrict activities on the day to the extent that they have not enjoyed a full holiday, but is not called out, then the Employee is entitled to a full day’s paid alternative holiday. Payment for the time on call is at .
(iii)   If the Employee is on call, but is not required to restrict activities, for example if the employee can choose not to accept the call out, then the entitlement to payment and an alternative paid holiday only arises if the Employee accepts the callout and the day would otherwise have been a working day for the employee. If this occurs, then the employee is entitled to payment (as detailed in the 'Payment for work on a public holiday' clause of this agreement) plus a full day’s paid alternative holiday. Payment to recognize the time on call regardless of a call out is at .


On-call on Public Holiday not on a normal working day
 
The Employer may request that the Employee is on call on a public holiday that would not otherwise have been a working day for the Employee. Where this occurs, the entitlement to payment is as follows:

(i)     If the employee is called out, the employee is entitled to payment (as detailed in the 'Payment for work on a public holiday' clause of this agreement) but not a day’s paid alternative holiday.
(ii)    If the Employee is required to restrict activities on the day to the extent that they have not enjoyed a full holiday, but is not called out, then the Employee is entitled to a full day’s paid alternative holiday. Payment for the time on call is at .
(iii)    If the Employee is on call, but is not required to restrict activities, for example if the employee can choose not to accept the call out, then entitlement to payment only arises if the Employee accepts the callout. Payment for the time on call regardless of a call out is at .

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Section 8 : Holidays & Leave - Sick, Bereavement, Parental & Other

The following collection of clauses deal with leave. The Holidays Act sets out certain minimums with regards to Sick Leave, Bereavement Leave and Parental Leave, though if the employer wishes, he or she may grant terms which are more favourable to the employee.

Another form of leave not shown in this list where there is a minimum legal entitlement is Parental Leave, which you will find in section 11 on the Progress Bar.

Sick Leave as set out in the Holidays Act
 
The Employee shall, after 6 months employment with the Employer, be entitled to 5 days sick leave for each subsequent 12 month period of service. Sick leave can be taken where the Employee is sick or where the employee’s spouse or a person who is dependent on the Employee is sick or injured.

Sick leave entitlements can be accumulated from year to year up to a maximum entitlement of 20 days.
Sick Leave which is more favourable than the Holidays Act
 
This clause is in substitution for and not in addition to the entitlements set out in the Holidays Act...The Employee shall be entitled to days sick leave rather than the 5 days referred to in section 65 of the Holidays Act...
...The Employee may accumulate up to days sick leave from year to year.
Sick Leave for genuinely casual employees
 
The Employee shall be entitled to five days’ sick leave if they have worked for six months at an average of at least 10 hours per week, and at least one hour per week or 40 hours per month...
Unlimited Wellness Entitlement
 
The Employer operates a Wellness policy which entitles the Employee to unlimited paid sick leave and bereavement leave...
I do not require this clause in my agreement.


The Holidays Act gives employers the right to require proof of illness:

  • after three consecutive calendar days’ absence
  • within three consecutive days if the employer has reasonable grounds to suspect the leave is not genuine.

These requirements are subject to various conditions (set out in the Holidays Act) and apply regardless of whether or not the employment agreement contains these requirements.

Medical Certificate Required for Sick Leave
 
Where the Employee has taken sick leave and has been absent from work for at least three consecutive calendar days, the Employer shall be entitled to require the employee to provide proof of entitlement to sick leave, at the employee’s cost.

Where the Employee takes sick leave, and the Employer has reasonable cause to suspect that the leave is not genuine, the Employer shall be entitled to require the employee to provide proof of entitlement to sick leave within the three consecutive calendar days, at the employer’s cost. The employer will inform the employee as early as possible that such proof will be required.


Bereavement Leave as set out in the Holidays Act
 
The Employee is entitled after 6 months employment to paid bereavement leave of up to three days in relation to the death of their parent, grandparent, sibling, child, grandchild, spouse, or parent of their spouse.

The Employee is entitled to one days paid bereavement leave if the Employer considers the Employee has suffered a bereavement through the death of another person.
Bereavement Leave that is more favourable than the Holidays Act
 
The Employee is entitled to paid leave of days in relation to the death of any person where the death causes the employee to suffer a bereavement.
Bereavement Leave for genuinely casual employees
 
The Employee shall be entitled to bereavement leave of up to three days... if they have worked for six months at an average of at least 10 hours per week, and at least one hour per week or 40 hours per month...
I do not require this clause in my agreement.


Parental Leave
 
The Employee shall be entitled to parental leave in accordance with the Parental Leave and Employment Protection Act 1987.
Additional Entitlements to Parental Leave
 
The Employee shall be entitled to parental leave and payment for parental leave as detailed below:
I do not require this clause in my agreement.

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Section 8 : Holidays & Leave - Other

Here are a few other examples of leave that may or may not come up in the course of an employment relationship.

Unpaid Leave
 
Applications for unpaid leave will be given reasonable consideration by the Employer, but shall be granted only at the employer’s sole discretion having regard to the requirements of the employer’s business and operations. Applications for unpaid leave will be considered in situations such as for compassionate reasons; to undertake a course of work-related study; or to gain additional work-related experience.


Annual Closedown
 
The Employer may closedown all or part of its operations regularly once a year and require the Employee to take leave during the period of the close down, even where this requires the Employee to take leave for which they are not fully reimbursed. The Employer shall provide the Employee with at least 14 days advance notice of the closedown.


Jury Duty
 
Where the Employee is called for jury duty, the Employer shall continue the employee’s full pay for the duration of the jury service for days that would otherwise have been working days, and the Employee will pay to the Employer any jurors fees received by them.


Volunteers Employment Protection
 
Leave for training or service in the Territorial and Reserve Forces shall be covered by the Volunteers Employment Protection Act 1973.

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Section 9 : Other Entitlements - Superannuation and Benefits

We have tried to provide a broad range of options below, reflecting benefits that are provided to employees in some circumstances. However, this list is not comprehensive, and other entitlements can be included in similar formats.

Superannuation - Membership of employer’s Scheme
 
The Employee shall be entitled to join the employer’s superannuation scheme from the commencement of employment. The Employer agrees to pay to the scheme , less tax, for each dollar the Employee contributes to the scheme, up to a maximum Employer contribution of .
Superannuation - Contribution to a Registered Scheme
 
The Employer shall, in addition to paying the employee’s base salary, pay the Employee an annual sum of , less tax, paid in equal sums on a basis, to a superannuation scheme of the employee’s choice.
Superannuation Available at the employer’s Discretion
 
The Employee shall be entitled to participate in any superannuation plan provided by the Employer to the employer’s employees, but nothing in this agreement shall affect the employer’s right to terminate or vary the plan in whole or in part at any time.
I do not require this clause in my agreement.


Medical Insurance
 
The Employer shall provide with medical insurance up to a value of per annum.


Reimbursement for Flu Shots
 
The Employer will arrange and pay for the Employee to receive a flu shot on an annual basis, where requested by the Employee.


Membership of a Club or Gym
 
...the Employer will pay to a club or gym when the Employee joins...


Reimbursement for Eye Tests
 
The Employee shall be entitled to an annual eye test...at the employer’s expense, up to a maximum cost of .


Use of Mobile Phone
 
...the Employee shall be provided with a mobile telephone...The Employer shall meet the cost of all work-related calls, but all personal calls shall be paid for by the Employee...


Use of Car Park
 
The Employee shall be entitled to the use of an allocated car park for each working day, at ...


Use of a Car for Work Purposes Only
 
The Employee shall be allocated a car for work purposes only...
Use of a Car for Work Purposes with Limited Personal Use (between home and work)
 
The Employee shall be allocated a car for work purposes, and for the purpose of the Employee travelling between home and work...
Use of a Car for Work Purposes and Personal Use
 
The Employee shall be allocated a car for work purposes, and for their own personal use in non work time...
I do not require this clause in my agreement.


Study Entitlements
 
...the Employee shall be entitled to...a contribution towards course fees of ...


Personal Development
 
At the completion of each 12 month period of service with the Employer the Employee shall be entitled to by way of a grant to attend a course or training which has been approved by the Employer, such approval not to be unreasonably withheld.


Indemnity
 
The Employer shall, to the extent permissible under law, indemnify the Employee from and against all actions, claims and demands brought against the Employee by any third party relating to the performance of the employee’s employment...


Subsidised Child Care
 
The Employer provides subsidised child-care facilities to its employees. The Employee is entitled to access that facility .
Monthly Contribution to Child Care Costs
 
The Employer will, in addition to the salary paid to the Employee, pay the Employee a monthly sum of as a contribution towards child care costs until the child is or is no longer in the care of the Employee, whichever occurs first.
I do not require this clause in my agreement.


Breastfeeding
 
The Employer is committed to providing reasonable assistance to those of its employees with child care responsibilities. This includes giving reasonable consideration to requests for short periods of time to attend to breastfeeding where the employee’s child is at an on site child care centre or is brought to a proximate location.

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Section 10 : Health & Safety

Health and Safety is an important part of every occupation. Both the employer and the employee should focus on keeping both themselves and others safe at work. Some of the more commonly found hazards are covered in the following clauses.

General Health and Safety Obligations
 
Both the Employer and the Employee shall comply with their obligations under the Health and Safety in Employment Act 1992. This includes the Employer taking all practicable steps to provide the Employee with a healthy and safe working environment. The Employee shall comply with all directions and instructions from the Employer regarding health and safety and shall also take all reasonable steps to ensure that in the performance of their employment they do not undermine their own health and safety or the health and safety of any other person.


Health and Safety Policies
 


VDU and work-station requirements
 


Chemical Use
 


Lifting
 


Drug Testing
 


EAP Assistance
 
Telephone number of EAP representative:


Counselling Assistance
 
The Employer a counsellor to provide support and assistance... contact the Counsellor on


This clause specifically relates to situations where the Employer has genuine reason to believe that the medical condition of the employee presents a health & safety risk. It cannot be used as a general right to require medical examinations.

Medical Examination
 

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Section 11 : Other Employment Obligations

The clauses below can be valuable in protecting both the employer and employee. Every occupation deals with information in one way or another, so read the clauses below carefully to determine whether they apply to the work being undertaken in this agreement.

Confidential Information
 
The Employee shall not, whether during the currency of this agreement or after its termination for whatever reason, use, disclose or distribute to any person or entity, otherwise than as necessary for the proper performance of their duties and responsibilities under this agreement, or as required by law, any confidential information, messages, data or trade secrets acquired by the Employee in the course of performing their services under this agreement. This includes, but is not limited to, information about the employer’s business.


Copyright and other Intellectual Property
 
All work produced for the Employer by the Employee under this agreement or otherwise and the right to the copyright and all other intellectual property in all such work is to be the sole property of the Employer.


Conflicts of Interest
 
The Employee agrees that there are no contracts, restrictions or other matters which would interfere with their ability to discharge their obligations under this agreement. If, while performing their duties and responsibilities under this agreement, the Employee becomes aware of any potential or actual conflict between their interests and those of the Employer, then the Employee shall immediately inform the Employer. Where the Employer forms the view that such a conflict does or could exist, it may direct the Employee to take action(s) to resolve that conflict, and the Employee shall comply with that instruction. When acting in their capacity as Employee, the Employee shall not, either directly or indirectly, receive or accept for their own benefit or the benefit of any person or entity other than the Employer any gratuity, emolument, or payment of any kind from any person having or intending to have any business with the Employer.


Use of Internet and Email
 
The Employee will have access to email and the internet in the course of their employment. The Employee shall ensure that at all times their use of the email and Internet facilities at work meets the ethical and social standards of the workplace. Whilst a reasonable level of personal use is acceptable to the Employer, this must not interfere with the employee’s employment duties or obligations, and must not be illegal or contrary to the interests of the Employer. The Employee shall also comply with all email and Internet policies issued by the Employer from time to time.


Privacy Obligations
 
The Employer and the Employee shall comply with the obligations set out in the Privacy Act 1993. The Employee must not breach the privacy of any customer or client in the course of their employment.

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Section 11 : Obligations - Restraint of Trade

Employers are asked to seek advice on the scope of any restraint of trade clauses they intend to include in an employment agreement. In order to be enforceable, the scope and duration of the clause needs to be reasonable in the circumstances of the particular case, and as such generic or general clauses are of limited value.

Non-Competition
 
The Employee agrees that for a period of following the termination of their employment for whatever reason, they shall not, either personally, or as an employee, consultant or agent for any other entity or employer, carry on business in competition with the Employer within a radius of kilometres from the employer’s premises.


Non-Solicitation of Clients
 
The Employee agrees that for a period of following the termination of their employment for whatever reason, they shall not, either personally, or as an employee, consultant or agent for any other entity or employer, seek to solicit or carry out any work of the same nature for any client or customer of the Employer with which the Employee had any contact or dealings whilst employed by the Employer.


Non-Solicitation of Employees
 
The Employee agrees that for a period of following the termination of their employment for whatever reason, they shall not, either personally, or as an employee, consultant or agent for any other entity or employer, solicit or engage or employ any employee of the Employer with whom the Employee had any dealings whilst employed with the Employer.


Severability
 
In the event any portion of this clause is viewed as unenforceable by any Authority or Court with jurisdiction to consider such clauses, the clause shall apply as modified by the Authority or the Court, or in the event it is not modified by the Authority or Court, the remainder of this clause and agreement shall continue to be enforceable by the parties.

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Section 12: Rights in contracting out situations

If this agreement is for an employee performing the following services in the following industries, certain rights apply.

  • cleaning services, food catering services, caretaking, or laundry services for the education sector (being the public and private pre-school, primary, secondary, and tertiary educational institutions):
  • cleaning services, food catering services, orderly services, or laundry services for the health sector (being any hospital, as defined by the Hospitals Act 1957 and any hospital within the meaning of the Mental Health (Compulsory Assessment and Treatment) Act 1992):
  • cleaning services, food catering services, orderly services, or laundry services in the age-related residential care sector:
  • cleaning services or food catering services in the public service (as defined in Schedule 1 of the State Sector Act 1988) or local government sector:
  • cleaning services or food catering services in relation to any airport facility or for the aviation sector:
  • cleaning services or food catering services in relation to any other place of work (within the meaning of the Health and Safety in Employment Act 1992).

If the employee performs one of those services in one of those industries, select the first radio button below (the round circle marked 'Employed in industry listed above') then click the continue link. If the employee does not perform one of those services in one of those industries, select the second radio button below (marked 'Not employed in industry listed above' - it’s selected by default) then click the continue link.

Employed in industry listed above
 
 
Not employed in industry listed above
 
 

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Section 12 : Redundancy (For those 'Employed in industry listed above')

Redundancy occurs when the amount or nature of work changes and some employees become surplus, or "redundant". The following section deals exclusively with redundancy: definition, process, notice, compensation and technical redundancy.

There is no legal requirement to include general redundancy clauses in employment agreements, although including such clauses can give certainty to employers and employees when the changing amount or nature of work in an enterprise makes some or all of its employees surplus to requirements.

Definition of Redundancy
 
Redundancy is a situation where the position of employment of an employee is or will become surplus to the requirements of the employer’s business.


Redundancy Process
 
In the event the Employer considers that the employee’s position of employment could be affected by redundancy or could be made redundant, the Employer shall, except in exceptional circumstances, consult with the Employee regarding the possibility of redundancy and, before a decision to proceed with redundancy is made, whether there are any alternatives to dismissal (such as redeployment to another role). In the course of this consultation the Employer shall provide to the Employee sufficient information to enable understanding and meaningful consultation, and shall consider the views of the Employee with an open mind before making a decision as to whether to make the employee’s position of employment redundant. Nothing in this clause limits the legal rights and obligations of the parties.


Notice of Termination due to redundancy
 
In the event the employee’s employment is to be terminated by reason of redundancy, the Employee shall be provided with notice in writing. This notice is in substitution for and not in addition to the notice set out in the general termination clause.


Compensation - Fixed Amount
 
In the event the employee’s employment is terminated on the basis of redundancy, the Employee shall be entitled to redundancy compensation in the sum of .
Compensation - Formula based on years of service
 
In the event the employee’s employment is terminated on the basis of redundancy, the Employee shall be entitled to redundancy compensation on the basis of the following formula: .
No Redundancy Compensation Payable
 
In the event the employee’s employment is terminated on the basis of redundancy, the Employee shall be entitled to notice of termination of employment as specified in the termination clause, but shall not be entitled to any additional payment, whether by way of redundancy compensation or otherwise.
I do not require this clause in my agreement.


Technical Redundancy
 
Where the employee’s position of employment is redundant by reason of the sale or outsourcing or merger or transfer of any part of the employer’s business or operations, the Employee shall not be entitled to redundancy compensation if they are offered similar employment by the purchaser, transferee or merged entity, on terms of employment which are no less favourable than the employee’s terms of employment at the time of the sale or outsourcing.

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Section 12: Restructuring (For those 'Not employed in industry listed above')

There is a requirement to include in an employee’s agreement a clause that explains the process to be undertaken where all or part of an employer’s business is transferred to a new employer, resulting in the loss or potential loss of an employee’s job, including the conditions on which an employee might transfer to the new employer.

Employees in some industries have a legal provision dealing with these matters. When you entered this agreement builder you were required to identify if your employees were undertaking particular tasks in the designated industries. If you are uncertain of the selection you made you can call 0800 800 863 for assistance.

There is no legal requirement to include general redundancy clauses in employment agreements, although including such clauses can give certainty to employers and employees when the changing amount or nature of work in an enterprise makes some or all employees surplus to requirements.

Restructuring



1a - In the event that all or part of the work undertaken by the employee will be affected by the employer entering into an arrangement whereby a new employer will undertake the work currently undertaken by the employee, the employer will:

Employer to provide information and consider comments in restructuring situations
 
meet with the employee, providing information about the proposed arrangement and an opportunity for the employee to comment on the proposal, consider and respond to their comments.
Employer to establish group of affected employees, provide information and consider comments in restructuring situations
 
establish a group to represent employees who may be affected by the changes, meet with that group to provide information on the proposed arrangement and consider and respond to their comments.
Employer to use redundancy clause process in restructuring situations
 
use the process outlined in the redundancy clause below.


1b - The employer will negotiate with the new employer, including whether the affected employees will transfer to the new employer on the same terms and conditions, and will:

Employer to require offer of similar position in restructuring situations
 
include in the agreement reached with the new employer a requirement that the employee be offered a position with the new employer at the same or similar terms of employment.
Employer to require offer of negotiable position in restructuring situations
 
include in the agreement reached with the new employer a requirement that the employee be offered a position with the new employer, at terms and conditions to be negotiated by the new employer and the employee.
Employer to use best endeavours to secure offer in resturucturing situations
 
use best endeavours to secure the new employer’s agreement to offer employment to the employee.
Employer to provide employee opportunity to discuss options with new employer in restructuring situations
 
provide the employee with opportunities to meet and discuss their employment options with a new employer.


1c - Where the employee either chooses not to transfer to the new employer, or is not offered employment by the new employer, the employer will:

Employer to activate redundancy provisions if employee not transferred to the new employer
 
activate the redundancy provisions of this agreement.
Employer to give employee priority access to other positions if employee not transferred to the new employer
 
give the employee priority in accessing other positions within the workplace.
Employer to provide access to counselling if employee not transferred to the new employer
 
during their period of notice provide the employee with access to employment counselling.
Employer to allow paid absence for job search and job interviews if employee not transferred to the new employer
 
allow the employee absense from work on pay to undertake a job search or attend job interviews.
Employer to provide retraining allowance if employee not transferred to the new employer
 
allow provide a retraining allowance of .

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Section 13 : Termination

Though it may not be pleasant to think about, it’s a good idea to have a termination clause in an agreement for the protection of both employer and employee. If you include a termination clause it cannot replace or override the requirement of the Employment Relations Act to deal with continuity of employment in restructuring situations that arise due to the transfer of work undertaken by the employee to a new business. Clauses to meet this compulsory requirement are included in Section 12.



Note: If you chose to include the probation clause back in section three (Nature of the Agreement), you must also include a General Termination clause.

General Termination
 
The Employer may terminate this agreement for cause, by providing notice in writing to the Employee. Likewise the Employee is required to give notice of resignation. The Employer may, at its discretion, pay remuneration in lieu of some or all of this notice period.


Termination for Serious Misconduct
 
Notwithstanding any other provision in this agreement, the Employer may terminate this agreement summarily and without notice for serious misconduct on the part of the Employee. Serious misconduct includes, but is not limited to:

(i)     theft;
(ii)    dishonesty;
(iii)   harassment of a work colleague or customer;
(iv)   serious or repeated failure to follow a reasonable instruction;
(v)    deliberate destruction of any property belonging to the Employer;
(vi)   actions which seriously damage the employer’s reputation.


Suspension
 
In the event the Employer wishes to investigate any alleged misconduct, it may, after discussing the proposal of suspension with the Employee, and considering the employee’s views, suspend the Employee on pay whilst the investigation is carried out.


Termination on Medical Grounds
 
In the event the Employee has been absent from work for which should represent an extended break from employment because of illness, the Employer shall be entitled to require the Employee to undergo a medical examination by a registered medical practitioner nominated by the Employer, at the employer’s cost. In assessing the employee’s fitness for work, the Employer shall take into account any report provided as a result of that examination, and any other medical report provided by the Employee within a reasonable time-frame. If, in the reasonable opinion of the Employer, the Employee is incapable of the proper performance of their duties by reason of illness, the Employer may terminate this agreement by the provision of at least notice.


Abandonment of Employment
 
In the event the Employee has been absent from work for three consecutive working days without any notification to the Employer, and the Employer has made reasonable efforts to contact the Employee, this agreement shall automatically terminate on the expiry of the third day without the need for notice of termination of employment.


Obligations of Employee on Termination
 
Upon the termination of this agreement for whatever reason, or at any other time if so requested by the Employer, the Employee shall immediately return to the Employer all information, material or property (including but not limited to computer disks, printouts, manuals, reports, letters, memos, plans, diagrams, security cards, keys, and laptop computers) either belonging to or the responsibility of the Employer and all copies of that material, which are in the employee’s possession or under their control.

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Section 14 : Resolving Problems in the Workplace

It is mandatory for the agreement to contain a clause on resolving employment relationship problems, including a reference to the 90 day period for raising a personal grievance. The long form of this clause has been pre-selected for you. Please click View this Clause in its Entirety for details.

Short Form
 
If any employment issues arise, those should be raised with the Employer as soon as possible so that they can be resolved. If the matter is not resolved either party can seek assistance from the Department of Labour's mediation service. If the issues are not resolved at mediation, they may be referred to the Employment Relations Authority.

If the issue is a personal grievance, the Employee must present that grievance within 90 days of the event giving rise to the grievance, or after further time if allowed by the Employer or where the Employment Relations Authority grants an extension of time.
Long Form
 
If the employment relationship is to be as successful as possible, it is important that the Employer and Employee deal effectively with any problems that may arise.

This procedure sets out information on how problems can be raised and worked through.

What is an employment relationship problem?

It can be anything that harms or may harm the employment relationship, other than problems relating to setting the terms and conditions of employment.

Clarify the problem

If either the Employer or Employee feels that there may be a problem in the employment relationship, the first step is to check the facts and make sure there really is a problem, and not simply a misunderstanding.

Either party might want to discuss a situation with someone else to clarify whether a problem exists, but in doing so they should take care to respect the privacy of other employees and managers, and to protect confidential information belonging to the Employer. For example, the Employee could seek information from:
  • friends and family
  • the Employment Relations Info-line on 0800 800 863 or on its website at www.ers.dol.govt.nz
  • pamphlets/fact sheets from the Employment Relations Service
  • their union (if they are a union member), a lawyer, a community law centre or an employment relations consultant.
Discuss the problem

If either party considers that there is a problem, it should be raised as soon as possible. This can be done in writing or verbally. Provided the Employee feels comfortable doing so, they should ordinarily raise the problem with their direct manager. Otherwise the problem can be raised with another appropriate manager. A meeting will usually then be arranged where the problem can be discussed. The Employee should feel free to bring a support person with them to the meeting if they wish.

The parties will then try to establish the facts of the problem and discuss possible solutions.

The Next Steps

If the parties are not able to resolve the problem by talking to each other, a number of options exist:
  • Either party can contact the Employment Relations Infoline, who can provide information and/or refer the parties to mediation.
  • Depending on the nature of the problem, the issues involved may also be ones that the Labour Inspectors employed by the Department of Labour can assist with, i.e. minimum statutory entitlements such as holiday, leave or wages provision.
  • Either party can take part in mediation provided by the Employment Relations Service (or the parties can agree to get an independent mediator).
  • If the parties reach agreement, a mediator provided by the Employment Relations Service can sign the agreed settlement, which will then be binding on the parties.
  • The parties can both agree to have the mediator provided by the ERS decide the problem, in which case that decision will be binding;
  • If mediation does not resolve the problem, either party can refer the problem to the Employment Relations Authority for investigation.
  • The Authority can direct the parties to mediation, or can investigate the problem and issue a determination.
  • If one or other of the parties is not happy with the Authority’s determination, they can refer the problem to the Employment Court.
In limited cases, there is a right to appeal a decision of the Employment Court to the Court of Appeal.

Personal Grievances

If the problem is a personal grievance, then the Employee must raise it within 90 days of when the facts that give rise to the grievance occur or come to their attention. A personal grievance can only be raised outside this time frame with the agreement of the Employer or in exceptional circumstances.

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Section 15 : Acknowledgement of the Agreement

Congratulations! This is the last section in the agreement, which has clauses which pertain to the agreement itself.

Read through these final few clauses, then press Continue to generate the completed document.

Variation of Agreement
 
The parties may vary this agreement, provided that no variation shall be effective or binding on either party unless it is in writing and signed by both parties.


Non Assignment by Employee
 
The Employee must personally perform the duties and responsibilities under this agreement and no subcontracting or assignment by the Employee is permissible.


Entire Agreement
 
Each party acknowledges that this agreement contains the whole and entire agreement between the parties as to the subject matter of this agreement.

Severability
 
The various provisions of this agreement are severable and if any provision is held to be invalid or unenforceable by any court of competent jurisdiction, then such invalidity or unenforceability shall not affect the remaining provisions of this agreement.


Deductions from Salary/Wages
 
Where requested by the Employee, the Employer shall deduct from their salary/wages any agreed amount for matters such as superannuation, a staff social club or union fees and pay the amount to the organisation specified by the employee. The Employer shall also be entitled to deduct from any salary payment payable upon termination of employment any overpayment made to the Employee for leave taken in advance.


Employee Acknowledgment
 
The Employee acknowledges that:
(i)     they have been advised of their right to take independent advice on the terms of this agreement,
(ii)    that they have been provided with a reasonable opportunity to take that advice;
(iii)   that they have read these terms of employment and understand these terms and their implications; and
(iv)   that they agree to be bound by these terms of employment and the employer’s policies and procedures as implemented by the Employer from time to time.


The Declaration (signatures of parties) have been marked as voluntary, since this agreement may be attached to a covering letter which contains the same clause.

Declaration
 
I, , offer this employment agreement to .


Signed by:.............................................................. Date:..........................


I, , declare that I have read and understand the conditions of employment detailed above and accept them fully. I have been advised of the right to seek independent advice in relation to this agreement, and have been allowed reasonable time to do so.


Signed by:.............................................................. Date:..........................

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About OER | Department of Labour, May 2006. © The Crown