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Employment Contract
I need a junior employment agreement for a graduate who has 1 year of industry experience, and will participate in a rotational program to find expertise which matches their skillsets. Statutory leave, no stock options, and 6 month probation (1 week notice) followed by 1 month notice period.
What is an Employment Contract?
An Employment Contract spells out the key terms and conditions between you and your employer in New Zealand. It covers essential details like your role, pay, hours, leave entitlements, and duties - creating a clear understanding for both parties under the Employment Relations Act 2000.
This legally binding agreement protects both workers and employers by setting clear expectations and rights. It must include mandatory terms required by NZ law, such as your work location, salary details, and dispute resolution processes. Good contracts help prevent misunderstandings and provide a solid foundation for positive working relationships.
When should you use an Employment Contract?
Use an Employment Contract before any new hire starts work in your organization. This written agreement needs to be ready when offering a permanent, fixed-term, or casual position - from entry-level roles to executive appointments. New Zealand law requires having this in place from day one of employment.
The contract becomes essential during major changes too, like promotions, role shifts, or when moving staff between company locations. Having clear terms documented helps prevent disputes, protects both parties' interests, and ensures compliance with the Employment Relations Act. Update existing contracts when significant workplace changes occur or when employment conditions need modification.
What are the different types of Employment Contract?
- Individual Employment Agreement: Standard one-on-one agreement between employer and employee, customized for specific role and conditions
- Collective Employment Agreement: Covers multiple employees, typically negotiated through unions for consistent terms across similar roles
- Casual Employment Contract: For irregular or on-call work without guaranteed hours
- Contract For Contractual Employees: Fixed-term agreements with specific end dates or project completion targets
- Workers Contract Of Employment: Basic agreement suitable for standard full-time or part-time positions
Who should typically use an Employment Contract?
- Employers: Create and offer contracts, ensure compliance with NZ employment law, and manage ongoing employment relationships
- Employees: Review, negotiate, and agree to terms, gaining clear understanding of their rights, duties, and benefits
- HR Managers: Draft contracts, update terms, and maintain employment records while ensuring organizational compliance
- Employment Lawyers: Review complex agreements, provide legal advice, and help resolve disputes
- Union Representatives: Negotiate collective agreements and represent workers' interests during contract discussions
- Employment Relations Authority: Oversees compliance and resolves disputes when parties can't reach agreement
How do you write an Employment Contract?
- Position Details: Define job title, duties, reporting lines, work location, and start date
- Compensation Package: Outline salary, payment frequency, bonuses, and any additional benefits
- Work Schedule: Specify regular hours, overtime expectations, breaks, and leave entitlements
- Legal Requirements: Include mandatory NZ terms like trial periods, public holidays, and dispute resolution processes
- Company Policies: Reference relevant workplace policies, confidentiality rules, and performance expectations
- Review Process: Use our platform to generate a legally compliant draft, then check all details match your specific needs
- Signatures: Prepare two copies for signing by both employer and employee before the start date
What should be included in an Employment Contract?
- Party Details: Full legal names and addresses of employer and employee
- Role Description: Job title, duties, location, and reporting relationships
- Hours and Pay: Work schedule, wages/salary, payment frequency, and overtime provisions
- Leave Entitlements: Annual, sick, bereavement, and public holiday arrangements
- Trial Period: Terms of any probationary period (if applicable) up to 90 days
- Dispute Resolution: Process for handling employment relationship problems
- Termination Clauses: Notice periods and grounds for ending employment
- Confidentiality: Protection of company information and intellectual property
- Signatures: Space for both parties to sign and date the agreement
What's the difference between an Employment Contract and an Employment Offer Letter?
An Employment Contract differs significantly from an Employment Offer Letter in several key ways. While both documents relate to hiring, they serve distinct purposes in the employment process.
- Legal Status: Employment Contracts are comprehensive, legally binding agreements that detail all terms of employment, while offer letters are preliminary documents that outline basic job details and initial proposals
- Timing and Use: Offer letters come first as informal job proposals, followed by formal Employment Contracts once terms are accepted
- Content Depth: Contracts contain detailed terms about rights, obligations, and workplace policies, whereas offer letters briefly summarize key points like salary and start date
- Legal Protection: Employment Contracts provide complete legal framework and protection under NZ employment law, while offer letters mainly serve as initial communication tools
- Enforcement: Only the Employment Contract can be legally enforced for employment terms and conditions
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