Employment Agreements
The terms, written down before anyone starts.
At Matt and Zen we draft and review employment agreements for employers, and we review agreements for employees before they sign them.
An employment agreement in New Zealand has to be in writing, and it sits on top of minimum entitlements that it cannot reduce. A great deal of the trouble we see starts with an agreement written as though that were not true.
We also advise on whether a working relationship is employment at all. Calling someone a contractor does not make them one.
Scope
We can assist with the following, and more.
Agreements
- Individual employment agreements
- Collective agreements and bargaining
- Fixed-term and casual arrangements, and when each is available
- Variations to an existing agreement
Terms worth getting right
- Trial and probation periods
- Restraint of trade and non-solicitation
- Confidentiality and intellectual property
- Hours, availability and remuneration clauses
Status
- Whether a role is employment or a contract for services
- Contractor agreements
- Reviewing an arrangement that has drifted over time
Review
- Reviewing an agreement before an employee signs
- Updating a template across a workforce
- Checking agreements after a change in the business
Minimums
Some entitlements cannot be contracted out of.
New Zealand sets minimum employment entitlements that an agreement cannot go below, whatever both parties have signed.
An agreement that tries to go below them does not lower the entitlement. It simply creates a liability the employer did not know they had, often discovered years later.
We draft to sit above those minimums, and we tell you where a clause you have been using does not.
Questions
Frequently asked questions.
Does an employment agreement have to be in writing?
Yes. New Zealand requires a written employment agreement, and the employee is entitled to a copy.
Can we use a trial period?
It depends on the employer and how the clause is drafted. Trial period rules have changed more than once, and a clause that is slightly wrong usually does not work at all. We check the current position before you rely on one.
Is a restraint of trade enforceable?
Only so far as it is reasonable, and that is judged on the role, the period and the area. A restraint drawn too wide can be read down or fail entirely.
Our contractor works like an employee. Does that matter?
It can. The substance of the arrangement counts for more than the label on it, and getting it wrong carries back-pay and tax consequences.
Can we change an agreement after someone has started?
By agreement, yes. Changing terms unilaterally is a different matter, and usually a problem.
Should an employee get advice before signing?
Yes, particularly where there is a restraint, a trial period, or an incentive scheme. It is far cheaper than advice afterwards.