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Employment Agreement

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Permanent Part Time
Fixed Period or Term
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Your Employment Agreement

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Employment Agreement Page of
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EMPLOYMENT CONTRACT

THIS EMPLOYMENT CONTRACT (this "Agreement") dated this ________ day of ________________, ________

BETWEEN:

____________________________________________ of ____________________________________________
(the "Employer")

OF THE FIRST PART

- AND -

____________________________________________ of ____________________________________________
(the "Employee")

OF THE SECOND PART

BACKGROUND:

  1. The Employer is of the opinion that the Employee has the necessary qualifications, experience and abilities to assist and benefit the Employer in its business.
  2. The Employer desires to employ the Employee and the Employee has agreed to accept and enter such employment upon the terms and conditions set out in this Agreement.

IN CONSIDERATION OF the matters described above and of the mutual benefits and obligations set forth in this Agreement, the receipt and sufficiency of which consideration is hereby acknowledged, the parties to this Agreement agree as follows:

  1. Commencement Date and Term
  2. The Employee will commence permanent full-time employment with the Employer on the 28th day of July, 2021 (the "Commencement Date").
  3. Job Title and Description
  4. The initial job title of the Employee will be the following: ____________________ The initial job duties the Employee will be expected to perform will be the following:
    ____________________________________________________________
  5. The Employee agrees to be employed on the terms and conditions set out in this Agreement. The Employee agrees to be subject to the general supervision of and act pursuant to the orders, advice and direction of the Employer.
  6. The Employee will perform any and all duties as requested by the Employer that are reasonable and that are customarily performed by a person holding a similar position in the industry or business of the Employer.
  7. The Employer may make changes to the job title or duties of the Employee where the changes would be considered reasonable for a similar position in the industry or business of the Employer. The Employee's job title or duties may be changed by agreement and with the approval of both the Employee and the Employer or after a notice period required under law.
  8. The Employee agrees to abide by the Employer's rules, regulations, policies and practices, including those concerning work schedules, annual leave and sick leave, as they may from time to time be adopted or modified.
  9. Employee Remuneration
  10. Remuneration paid to the Employee for the services rendered by the Employee as required by this Agreement (the "Remuneration") will include an hourly wage at the rate of $__________.
  11. This Remuneration will be payable twice per month via direct deposit into the employee's chosen bank account while this Agreement is in force. The Employer is entitled to deduct from the Employee's Remuneration, or from any other remuneration in whatever form, any applicable deductions and remittances as required by law.
  12. The Employee understands and agrees that any additional remuneration paid to the Employee in the form of bonuses or other similar incentive remuneration will rest in the sole discretion of the Employer and that the Employee will not earn or accrue any right to incentive remuneration by reason of the Employee's employment.
  13. The Employer will reimburse the Employee for all reasonable expenses, in accordance with the Employer's lawful policies as in effect from time to time, including but not limited to, any travel and entertainment expenses incurred by the Employee in connection with the business of the Employer. Expenses will be paid within a reasonable time after submission of acceptable supporting documentation.
  14. KiwiSaver
  15. If the Employee qualifies under the relevant legislation, the Employer will make contributions to the Employee's KiwiSaver scheme at a rate of 3% on top of their Remuneration. The Employee will also contribute 3% where their contribution will be deducted from their Remuneration.
  16. The Employer will pay all required employer superannuation contribution tax.
  17. The Employee can opt out of KiwiSaver between 14 days and 56 days after the Commencement Date.
  18. Place of Work
  19. The Employee's primary place of work will be at the following location:
    • ____________________________________________________________
  20. Time of Work
  21. The Employee's normal hours of work, including breaks, ("Normal Hours of Work") are as follows: ______________________________
  22. However, the Employee will, on receiving reasonable notice from the Employer, work additional hours and/or hours outside of the Employee's Normal Hours of Work as deemed necessary by the Employer to meet the business needs of the Employer.
  23. Employee Benefits
  24. The Employee will be entitled to only those additional benefits that are currently available as described in the lawful provisions of the Employer's employment booklets, manuals, and policy documents or as required by law.
  25. Employer discretionary benefits are subject to change, without compensation, upon the Employer providing the Employee with 60 days written notice of that change and providing that any change to those benefits is taken generally with respect to other employees and does not single out the Employee.
  26. Annual Leave
  27. The Employee will be entitled to four weeks of paid annual leave each year during the term of this Agreement, or the amount of paid annual leave as entitled by law, whichever is greater.
  28. The times and dates for any annual leave will be determined by mutual agreement between the Employer and the Employee.
  29. Upon termination of employment, the Employer will compensate the Employee for any accrued but unused annual leave.
  30. Public Holidays
  31. The Employer may ask the Employee to work on a public holiday but the Employee has the right to decline to work. The Employee will not work on a public holiday unless asked to by the Employer.
  32. If the Employee works on a public holiday they will be paid the portion of the Employee’s relevant daily pay or average daily pay that relates to the time actually worked on the day plus half that amount again. In addition, the Employee will receive a paid day off at a later date in lieu of the public holiday. The date of this alternative day off will be determined by mutual agreement between the Employee and the Employer. If the parties cannot agree, the Employer will decide the date and notify the Employee a minimum of 14 days' in advance of the date.
  33. If the Employee does not work on a public holiday and the day would otherwise be a working day for the Employee, the Employer will pay the Employee the Employee’s relevant daily pay or average daily pay for that day.
  34. Sick Leave
  35. The Employee will be entitled to five days of paid sick leave each year during the term of this Agreement, or the amount of paid sick leave as entitled by law, whichever is greater. This sick leave will be available to the Employee after they have worked for the Employer for six months.
  36. The Employee may accrue a maximum of 20 days of unused sick leave. Upon termination of employment, the Employer will not compensate the Employee for any accrued but unused sick leave.
  37. Bereavement Leave
  38. During the term of this Agreement, the Employee will be entitled to three days of paid bereavement leave after the death of an immediate family member, or the amount of paid bereavement leave as entitled by law, whichever is greater. This bereavement leave will be available to the Employee after they have worked for the Employer for six months.
  39. If the Employee requires bereavement leave, they must inform the Employer of their relationship to the deceased, and the dates of their requested leave as soon as possible.
  40. Unused bereavement leave cannot be carried forward and will not be paid out upon termination of this Agreement.
  41. Domestic Violence Leave
  42. During the term of this Agreement, the Employee will be entitled to ten days of paid domestic violence leave each year, or the amount of paid domestic violence leave as entitled by law, whichever is greater. This domestic violence leave will be available to the Employee after they have worked for the Employer for six months.
  43. The Employee may take domestic violence leave if they are personally affected by domestic abuse, or a child living with them is affected by domestic abuse.
  44. If the Employee requires domestic violence leave, they must inform the Employer of the dates of their requested leave as soon as possible.
  45. Unused domestic violence leave cannot be carried forward and will not be paid out upon termination of this Agreement.
  46. Duty to Devote Full Time
  47. The Employee agrees to devote full-time efforts, as an employee of the Employer, to the employment duties and obligations as described in this Agreement.
  48. Conflict of Interest
  49. During the term of the Employee's active employment with the Employer, it is understood and agreed that any business opportunity relating to or similar to the Employer's actual or reasonably anticipated business opportunities (with the exception of personal investments in less than 5% of the equity of a business, investments in established family businesses, real estate, or investments in stocks and bonds traded on public stock exchanges) coming to the attention of the Employee, is an opportunity belonging to the Employer. Therefore, the Employee will advise the Employer of the opportunity and cannot pursue the opportunity, directly or indirectly, without the written consent of the Employer.
  50. During the term of the Employee's active employment with the Employer, the Employee will not, directly or indirectly, engage or participate in any other business activities that the Employer, in its reasonable discretion, determines to be in conflict with the best interests of the Employer without the written consent of the Employer.
  51. Contract Binding Authority
  52. Notwithstanding any other term or condition expressed or implied in this Agreement to the contrary, the Employee will not have the authority to enter into any contracts or commitments for or on the behalf of the Employer without first obtaining the express written consent of the Employer.
  53. Disputes
  54. In the event the Employee has a dispute regarding their employment, the Employee should tell the Employer as soon as possible. If the dispute is a personal grievance, the Employee must raise the grievance with the Employer within 90 days of either when the issue occurred, or when they first became aware of the issue.
  55. If the Employee and Employer are unable to resolve the dispute through internal discussion, the Employee and Employer agree to refer the dispute to Employment Mediation Services. If the dispute cannot be resolved through mediation, the Employee and Employer agree to submit the dispute to the Employment Relations Authority.
  56. Employee Protection Provision
  57. In the event the Employer's business is sold, if the Employee is classified as a vulnerable worker as defined under the Employment Relations Act Schedule 1A, then the Employee is entitled to all protections as required by law in restructuring situations.
  58. For all other employees, the Employer will, as soon as possible, discuss with the new business owner and the Employee what impact the sale of the business will have on the Employee's role. The Employer will make a good faith effort to negotiate with the new business owner on whether the Employee can transfer their employment as a part of the sale of the business, and if so, whether the employment will be on the same terms and conditions.
  59. Redundancy
  60. If in the normal course of business, following a reasonable restructuring process, the Employee is made redundant, the Employee will be given one (1) week of notice of termination of employment. The Employee will receive no redundancy pay or other redundancy compensation.
  61. Termination Due to Discontinuance of Business
  62. Notwithstanding any other term or condition expressed or implied in this Agreement, in the event that the Employer will discontinue operating its business at the location where the Employee is employed, then, at the Employer's sole option, and as permitted by law, this Agreement will terminate as of the last day of the month in which the Employer ceases operations at such location with the same force and effect as if such last day of the month were originally set as the Termination Date of this Agreement.
  63. Termination of Employment
  64. Where there is just cause for termination, the Employer may terminate the Employee's employment without notice, as permitted by law.
  65. The Employee and the Employer agree that reasonable and sufficient notice of termination of employment by the Employer is the greater of one (1) week or any minimum notice required by law. Alternatively the Employer may pay the Employee instead of the Employee working the remainder of the notice period.
  66. If the Employee wishes to terminate this employment with the Employer, the Employee will provide the Employer with the greater of one (1) week and the minimum required by law. As an alternative, if the Employee co-operates with the training and development of a replacement, then sufficient notice is given if it is sufficient notice to allow the Employer to find and train the replacement.
  67. The Termination Date specified by either the Employee or the Employer may expire on any day of the month and upon the Termination Date the Employer will forthwith pay to the Employee any outstanding portion of the remuneration including any accrued annual leave and banked time, if any, calculated to the Termination Date.
  68. Once notice has been given by either party for any reason, the Employee and the Employer agree to execute their duties and obligations under this Agreement diligently and in good faith through to the end of the notice period. The Employer may not make any changes to remuneration or any other term or condition of this Agreement between the time termination notice is given through to the end of the notice period.
  69. Remedies
  70. In the event of a breach or threatened breach by the Employee of any of the provisions of this Agreement, the Employee agrees that the Employer is entitled to a permanent injunction, in addition to and not in limitation of any other rights and remedies available to the Employer at law or in equity, in order to prevent or restrain any such breach by the Employee or by the Employee's partners, agents, representatives, servants, employees, and/or any and all persons directly or indirectly acting for or with the Employee.
  71. Severability
  72. The Employer and the Employee acknowledge that this Agreement is reasonable, valid and enforceable. However, if any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, it is the parties' intent that such provision be changed in scope by the court only to the extent deemed necessary by that court to render the provision reasonable and enforceable and the remainder of the provisions of this Agreement will in no way be affected, impaired or invalidated as a result.
  73. Notices
  74. Any notices, deliveries, requests, demands or other communications required here will be deemed to be completed when hand-delivered, delivered by agent, or seven (7) days after being placed in the post, postage prepaid, to the parties at the following addresses or as the parties may later designate in writing:
    • Employer:

      Name:

      ____________________________________________

      Address:

      ____________________________________________

      Fax:

      ____________________________________________

      Email:

      ____________________________________________

    • Employee:

      Name:

      ____________________________________________

      Address:

      ____________________________________________

      Fax:

      ____________________________________________

      Email:

      ____________________________________________

  75. Modification of Agreement
  76. Any amendment or modification of this Agreement or additional obligation assumed by either party in connection with this Agreement will only be binding if evidenced in writing signed by each party or an authorised representative of each party.
  77. Governing Law
  78. This Agreement will be construed in accordance with and governed by the laws of New Zealand.
  79. Definitions
  80. For the purpose of this Agreement the following definitions will apply:
    1. 'Termination Date' means the date specified in this Agreement or in a subsequent notice by either the Employee or the Employer to be the last day of employment under this Agreement. The parties acknowledge that various provisions of this Agreement will survive the Termination Date.
  81. General Provisions
  82. Time is of the essence in this Agreement.
  83. Headings are inserted for the convenience of the parties only and are not to be considered when interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa.
  84. No failure or delay by either party to this Agreement in exercising any power, right or privilege provided in this Agreement will operate as a waiver, nor will any single or partial exercise of such rights, powers or privileges preclude any further exercise of them or the exercise of any other right, power or privilege provided in this Agreement.
  85. This Agreement will inure to the benefit of and be binding upon the respective heirs, executors, administrators, successors and assigns, as the case may be, of the Employer and the Employee.
  86. This Agreement may be executed in counterparts. Facsimile signatures are binding and are considered to be original signatures.
  87. If, at the time of execution of this Agreement, there is a pre-existing employment agreement still in effect between the parties to this Agreement, then in consideration of and as a condition of the parties entering into this Agreement and other valuable consideration, the receipt and sufficiency of which consideration is acknowledged, this Agreement will supersede any and all pre-existing employment agreements between the Employer and the Employee. Any duties, obligations and liabilities still in effect from any pre-existing employment agreement are void and no longer enforceable after execution of this Agreement.
  88. This Agreement constitutes the entire agreement between the parties and there are no further items or provisions, either oral or written. The parties to this Agreement stipulate that neither of them has made any representations with respect to the subject matter of this Agreement except such representations as are specifically set forth in this Agreement.

IN WITNESS WHEREOF, the parties have duly affixed their signatures under hand and seal on this ________ day of ________________, ________.

EMPLOYER:

______________________________
____________________________________________



EMPLOYEE:

______________________________
____________________________________________

Employment Contract Information

What is an Employment Contract?

An Employment Contract, also known as an employment agreement, is a document that outlines the rights, responsibilities, and obligations of an employer and employee. For instance, this agreement typically contains information about wages, benefits, hours, and job responsibilities.

Use LawDepot’s Employment Contract template for employees who work:

  • Full time: A full-time employee typically works more than 30 hours a week and receives benefits that other employees don’t.
  • Part-time: A part-time employee typically works less than 30 hours a week with a guaranteed minimum number of work hours.
  • Casual: A casual employee doesn’t have a guaranteed minimum number of hours, but they work as needed.
  • In permanent or fixed-term positions: You may or may not specify an end date for the employee’s position. The contract automatically expires with a set end date; neither party needs to give any notice to end employment.

What if I don’t have an Employment Contract?

New Zealand laws require employers to keep a written Employment Contract for every employee. Typically, after hiring an employee, employers have 30 days to issue a contract. Without a written agreement, employers may face fines.

A signed contract protects the interests of both employees and employers.

The terms set out in the agreement help mitigate any risks to an employer when hiring a new employee. For instance, the contract often includes conditions (such as prohibited behaviours) upon which an employer may terminate the employee without notice. For example, if the employee behaves violently or steals from the company, the employer might have the right to immediately dismiss them.

An Employment Contract also outlines an employee’s entitlements, including compensation, working hours, benefits packages, and vacation time. If an employer fails to provide the proper amount of compensation or work time, an employee could pursue legal action against them. In this case, the employee could use the Employment Contract as evidence of their agreement in court.

Use an Independent Contractor Agreement for contractors, not employees, as different laws apply to contractors.

What should an Employment Contract include?

Typically, the information you need to write an Employment Contract includes:

  • Party details: List the employee’s and the employer’s name and contact information. Include the place of employment’s address as well.
  • Job description: Describe the position title, initial duties, and obligations.If there is a probationary period, specify its length.
  • Remuneration: Explain how you will pay the employee (e.g., an hourly wage, salary, commission, or a combination of payment types), overtime payments, and pay periods. Specify if the employer will enrol the employee in KiwiSaver, how much each party will contribute, and how to pay taxes on contributions.
  • Work hours and leave: State the employee’s normal hours of work and their annual leave entitlements (i.e., vacation, sick days, bereavement, and domestic violence leave).
  • Post-employment restrictions: Prevent the employee from sharing confidential information or recruiting the employer’s current employees or contracts. These restrictions typically remain in effect after the employee leaves the company.
  • Termination notice periods: Specify how much notice the employer or employee must give to terminate the employment agreement.

LawDepot’s Employment Contract template also allows you to write additional clauses into the agreement yourself. For example, some employers may wish to include a non-compete clause that prohibits an employee from working for the company’s competitors once they’ve left the company.

What happens when someone breaches the Employment Contract?

An Employment Contract is a legally binding agreement. If one party breaches the contract, the other may take legal action against the other to enforce the terms in court.

If the employer breaches the contract (e.g., by failing to provide leave entitlements), the employee may either resolve the issue on their own, or they might contact a lawyer and file a court claim.

If the employee breaches the contract (e.g., by using illegal substances on company property), the employer might terminate the employee without notice. Alternatively, they might send the employee a warning letter and give them the chance to remedy the problem.

How do I make changes to my Employment Contract?

Use an Amending Agreement to make minor changes, additions, or deletions to your Employment Contract. This document modifies the existing agreement while the original terms and conditions remain intact. Keep in mind that both parties must agree to the changes and sign the Amending Agreement.

If you are changing a fundamental part of the agreement (such as going from full-time to casual employment), it might be best to create a new Employment Contract.

Related documents

  • Amending Agreement: Change, add, or delete terms in your Employment Contract without compromising the original agreement.
  • Independent Contractor Agreement: Outline the terms of a project, commitment, or job that a client hires a contractor to complete.
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