Income and Work
Reading Your Employment Agreement Before You Sign
📄 Your right to a written agreement
Your employment agreement is the single most important document in your working life, yet most people sign it in a hurry on their first day without reading it properly. That is a mistake, because the agreement decides your pay, your hours, your notice period, and what happens if things go wrong. In New Zealand the law is firmly on your side here. Every employee must have a written employment agreement, and your employer has to give you a copy of the terms before you start and a genuine chance to read it. You are also entitled to a reasonable opportunity to seek advice before you sign, which means you can take the document home, ask a union, a lawyer, a Community Law Centre, or someone you trust to look it over, and come back with questions. An employer who pressures you to sign on the spot is not following the law. This guide walks you through your right to a written agreement and time to take advice, what the agreement must contain, the clauses that deserve a careful read before you sign, and the minimum rights no agreement can take away from you. Read it before the offer arrives, because the time to protect yourself is while you can still negotiate, not after you have signed.
Individual and collective agreements
There are two kinds of employment agreement in New Zealand, and it matters which one you are being offered.
- Individual employment agreement: an agreement between you and your employer alone. Most employees are on one of these. Its terms are negotiated between the two of you, within the limits set by the law.
- Collective employment agreement: an agreement negotiated between one or more employers and a union, which covers union members in the workplace. If a collective agreement covers your role and you join the union, you are covered by its terms. If you are not a union member, you are on an individual agreement, though a new employee is often offered the same terms as the collective for the first 30 days.
The written agreement is not just paperwork for your employer. It is your evidence of what was agreed. If a dispute arises later about your hours, your pay rate, or your notice, the written terms are what everyone relies on. Keep your signed copy somewhere safe and make sure the version you signed matches what you were promised.
Time to take advice
Being given a reasonable opportunity to seek advice is a legal requirement, not a courtesy. In practice this means the employer should give you the agreement to take away, allow enough time to read and consider it, and not withdraw the offer just because you asked for a day or two. Free advice is available from Employment New Zealand, a Community Law Centre, a Citizens Advice Bureau, or a union. If a clause is unclear, ask the employer to explain it in writing, and do not rely on a verbal promise that something in the written agreement will not really apply.
If your manager says the agreement is a formality and a harsh clause will never be used, ask for that in writing or have the clause removed. Once you sign, the written words are what count. A promise made across a desk is very hard to prove later.
📝 What an employment agreement must contain
The law sets a minimum list of terms that every individual employment agreement must include. If any of these are missing, the agreement does not meet the legal standard. Check that each one is present and that it says what you expect it to say.
| Required term | What to check |
|---|---|
| The names of the parties | Your name and the correct legal name of your employer, so it is clear who the agreement is between |
| A description of the work | The role and the duties you are expected to perform, so the job is not open-ended |
| The place of work | Where you will work, and whether that can change |
| The hours of work | Your agreed hours, or an indication of the hours you will normally work |
| The wages or salary | Your pay rate or salary and how it is paid. It must be at least the minimum wage |
| How to resolve problems | A clear, plain explanation of how to resolve employment relationship problems, including the 90-day time limit for a personal grievance |
| Public holiday pay statement | A statement that you will be paid at least time and a half for working on a public holiday |
| Employee protection provision | What happens to your employment if the business is sold or the work is contracted out |
Beyond the minimum
Most agreements go well beyond that minimum list and add clauses on leave, KiwiSaver, confidentiality, notice, availability, deductions, and more. Those extra clauses are exactly where the terms can quietly work against you, so the next section walks through the ones that most deserve a careful read before you sign.
Important terms are often pushed into a schedule, an appendix, or a separate policy document the agreement refers to. A clause that says you agree to be bound by the company handbook can pull in rules you have not seen. Ask for every document the agreement mentions, and read them before you sign.
🔍 The clauses to read carefully before you sign
These are the clauses that most often catch people out. None of them are automatically unfair, but each one can cost you money or freedom if you sign without understanding it.
1. Trial and probation clauses
A 90-day trial period lets a new employer dismiss you within your first 90 calendar days without you being able to raise a personal grievance for unjustified dismissal. It is only valid if it is written into your agreement and you sign before your first day of work. Signing after you have started makes the trial invalid. A probationary period is different: it does not remove your unjustified-dismissal rights, and the employer must still follow a fair process. Check which one you are being offered, because the words matter. Our 90-day trials guide covers this in full.
2. Availability and shift cancellation clauses
An availability provision requires you to be available to work extra hours on top of your agreed hours. It is only lawful if the employer has genuine reasons based on reasonable grounds and pays you reasonable compensation for making yourself available. A clause that demands availability with no compensation is not enforceable. A shift cancellation clause should state how much notice you will get if a shift is cancelled and what compensation you receive if the notice is short. Read these carefully if the role has variable hours.
3. Restraint of trade and non-solicitation
A restraint of trade tries to stop you working for a competitor or setting up on your own for a period after you leave. A non-solicitation clause tries to stop you taking clients or staff with you. These clauses are only enforceable so far as they are reasonable to protect a genuine business interest, judged on how long they last, how wide the area is, and how much they limit your ability to earn a living. A restraint that is too broad can be reduced or struck out by a court, but you do not want to find that out the hard way, so negotiate anything unreasonable before you sign.
4. Deductions clauses
Under the Wages Protection Act 1983, your employer can only take money from your pay if it is required by law, such as PAYE and student loan repayments, or if you have given written consent. Many agreements include a general deductions clause where you consent in advance to deductions for things like till shortages, breakages, or training costs. Even with that clause, the employer must consult you before making a specific deduction, and cannot deduct an unreasonable amount. Be cautious about signing a broad deductions clause, and ask what it would actually be used for.
5. Notice periods
The notice period is how much warning you or your employer must give to end the employment. It is often the only cushion you have if the job ends, so check it. A short notice period, such as one week, gives you little time to line up your next role. Notice can also be different for you and the employer, and different again during a trial period. Know what your notice is worth before you ever need it. Our notice period calculator can help you see it in dollar terms.
6. How pay reviews work
Look at whether the agreement promises a pay review and, if so, what it actually commits to. A clause that says pay will be reviewed annually is not the same as a promise of a pay rise. A review means the employer will look at your pay, not that it must go up. If a rise was discussed, get the detail in writing, including when and how it is decided.
No clause can lawfully sign away your minimum legal entitlements, even if you agree to it. You are always entitled to at least the minimum wage, four weeks of annual leave, paid sick and bereavement leave, rest and meal breaks, holiday pay, and payment for all the time you work. If the agreement says something below these floors, the law overrides it and the minimum still applies.
Where to get free help
You do not have to work this out alone. Employment New Zealand runs a free contact centre on 0800 20 90 20 and publishes the official rules at employment.govt.nz. Community Law Centres and Citizens Advice Bureaux offer free advice, and if you are a union member your union can check the agreement for you. Use these before you sign, not after. Our rest and meal breaks guide and comparing job offers guide are good companions when you are weighing up an offer.
🔢 Four New Zealand examples
These examples show how the rules play out when a real agreement lands on the table. The figures use round numbers for clarity, and the rules are current for 2026.
Situation: Aroha is offered an office role on $58,000 a year with a 90-day trial clause. She starts on the Monday and signs the agreement on the Wednesday, two days into the job. At week five she is dismissed with no reason given.
Why the trial does not protect the employer:
Always sign before your first shift and keep a dated copy. If you started before you signed, the trial almost certainly does not apply, and you keep your full unjustified-dismissal rights.
Situation: Daniel is a hairdresser earning $55,000. His new agreement contains a restraint of trade saying he cannot work as a hairdresser anywhere in New Zealand for 12 months after he leaves. He is worried it would stop him earning a living.
Testing whether the restraint is reasonable:
An overly broad restraint may be unenforceable, but proving that takes time and money. It is far better to negotiate a narrower clause now, for example a shorter period, a smaller area, or a non-solicitation clause that only stops you approaching existing clients.
Situation: Mere works 30 hours a week in retail at $24.50 an hour, so her gross weekly pay is 30 times $24.50 = $735. One evening the till is $80 short. Her agreement has a general deductions clause, and her manager says the $80 will come out of her next pay.
What the law allows:
A general deductions clause does not let an employer dock your pay whenever they like. They must consult you about the specific deduction, and a shortfall that was not your fault may not be a fair thing to deduct at all. If in doubt, ask for it in writing and get advice.
Situation: Sina has two job offers. Offer A pays $62,000 with a four-week notice period and no availability clause. Offer B pays $64,000 with a one-week notice period and an availability provision that asks her to be on call for up to 10 extra hours a week, with no compensation for being available.
Looking past the headline pay:
Related guides and tools
- 90-day trials guide, for how a trial period changes your rights.
- Comparing job offers guide, for weighing two offers side by side.
- Negotiating your salary guide, for getting the pay and terms right before you sign.
- Rest and meal breaks guide, for the minimum rights no agreement can remove.
- Tools: notice period calculator, minimum wage calculator, and take-home pay calculator.
Verified against Employment New Zealand (employment.govt.nz) pages on creating an employment agreement, the mandatory terms an agreement must contain, collective and individual agreements, negotiating and accepting as an employee, availability provisions, and deductions. Deductions rules are set by the Wages Protection Act 1983, and the written-agreement and advice requirements by the Employment Relations Act 2000. Figures and rules current for 2026. This guide is general information, not legal advice.
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