The Employment Relations Act for employers

Every employee must have a written employment agreement. It can be either an individual agreement or a collective agreement.

There are some provisions that must be included in employment agreements by law, and there are also a number of minimum conditions that must be met regardless of whether they are included in agreements. Employment law also provides a framework for negotiating additional entitlements.

This section looks at the rules governing employment relationships in New Zealand under the Employment Relations Act 2000 from the start of the relationship, through to how it is formalised in an employment agreement and how it can end.

The Employment Agreement Builder

The Employment Agreement Builder can help you to put together a draft employment agreement for your employee. It clearly shows you which clauses are compulsory, which clauses reflect minimum conditions that the employee is entitled to regardless of their inclusion in their employment agreement, and which clauses can be included voluntarily to meet the needs of you and your employee.

The key to this information is to use it as a starting point to establish conditions that best suit your particular relationship and the employment agreement.

Covering letters

You can also customise and download a range of covering letters to send out with your employment agreement. These letters cover the range of circumstances that the Employment Relations Act requires employers to address when offering employment.

Good faith

The Employment Relations Act 2000 has “good faith” as its central principle. This means that employers, employees and unions must deal with one another honestly and openly.

Specifically, the Act:

• promotes good employment relations and mutual respect and confidence between employers, employees, and unions
• sets the environment for individual and collective employment relationships
• sets out requirements for the negotiation and content of collective and individual employment agreements
• provides prompt and flexible options for resolving problems in employment relationships.

Who needs this information?

• Anyone who has a paid job or who employs other people in paid work
• Anyone intending to work or who has a new job
• Employers who want to know what they have to do when employing new staff
• Those negotiating new employment agreements
• Anyone who wants to know what can be included in employment agreements
• Anyone who needs information when an employment relationship ends, such as in the event of dismissal, redundancy, retirement or resignation.

Further information & guidance

If you can’t find an answer to your question, or you want further clarification, more detailed information or guidance on any matter covered here, check the  Department of Labour’s FAQ Knowledgebase.

Disclaimer

The content of this document covers common problems. It will not answer every question and should not be used as a substitute for legislation or legal advice.