What should I look for when reviewing a new Employment Contract?
- Anne-Marie Dolan
- 2 days ago
- 5 min read
When you get handed a new employment contract, it can feel like you’re staring down a wall of legal text full of promises, obligations and fine print. But with a clear head, and a systematic check list, you can spot what’s good, and what might cause problems later.
What must be included in a New Zealand Employment Contract?
Under NZ law (the Employment Relations Act 2000), every employee in New Zealand should have a written employment agreement. Your contract should include at least the following elements:
The names of the employer and the employee making clear who the two parties are.
A job title and/or job description so it's clear what is expected of you.
Place of work or the general area/location.
Hours work is to be carried out, whether that be fixed hours, casual, shift or on‑call, and some explanation of how hours will be offered or organised.
Wage or salary, and how you will be paid including frequency of pay, method, and any allowances or penalty rates agreed upon.
Holiday, public holiday, and other leave entitlements, so it’s clear what you get, or that statutory entitlements apply.
Clarity about the nature of employment, whether it be a fixed term contract (with an end date or event), casual (no guarantee of ongoing hours) or ongoing (permanent, with no end date).
Any agreed additional terms such as a 90 day trial period or probation clause, confidentiality obligations, intellectual property or restraint of trade clauses, notice periods, and other agreed conditions.
A good employment contract should set out clearly what you will do, how you will be paid, when and where, and how problems will be handled.
What should you watch out for in your new employment contact?
Just because a contract is written doesn’t automatically make it fair. Some clauses may unfairly favour the employer, or limit your rights in ways that could trouble you down the track. Here are some common warning signs:
Being pushed to sign immediately.
You have the right to a reasonable amount of time to read an employment agreement and get advice. Rushing undermines your chance to catch hidden restrictions such as trial periods, notice periods, and non‑compete clauses.
Vague or missing definitions of work, duties or hours.
If the contract describes your job as “other duties as required” with no limits or times, that gives the employer too much freedom, and you too little clarity. Similarly, if hours are left undefined, especially for part-time or casual work, that can lead to unpredictability in your income.
Unclear or overly restrictive trial or probation periods.
Probation or trial periods are common. But ensure the clause is fair and clearly defined including duration, what’s expected, and how performance will be judged, and what happens if you do not successfully complete your trial or probation.
One‑sided termination or notice clauses.
If the contract lets the employer fire you with little or no notice, or on vague grounds, that is a concern.
Make sure notice periods, and what triggers termination, are fair and clear.
Harsh restraint of trade, confidentiality, or intellectual property clauses.
Clauses that prevent you working elsewhere (non‑compete) or that claim ownership over things you develop deserve close scrutiny. These should be reasonable and clearly limited.
Pay or wage details not clearly set out, or below minimum standards
If the wage or salary isn’t spelled out clearly, or payment frequency/method is missing or ambiguous that’s a danger. The contract must respect statutory minimum entitlements including minimum wage, holiday entitlements, public‑holiday pay etc.
What should you do before signing a new employment contract?
When you receive an employment contract, treat it as your first project on the job. Don’t leave anything to chance.
Read it thoroughly, from top to bottom. Look for mandatory clauses (duties, pay, hours, place, rights) and any added extras.
Take your time. If time allows, ask for at least a day or two to think it over.
Ask questions about anything unclear such as what “other duties” means, how hours are decided, what a “probation” actually requires, when you can get holidays and what happens on termination.
Compare it against your statutory rights. You’re entitled to at least minimum wage, holidays, fair treatment under law. A contract cannot trade those away. You can check these at Employment NZ or ask for advice from a legal expert.
Negotiate if needed. You can ask for better terms like clearer hours, a firm job description, realistic trial period, reasonable notice, fair pay rates. Most employers expect negotiation.
If in doubt, get advice. Talk to someone you trust such as a more experienced friend or family member, union representative or legal expert). You don’t have to sign if something feels off or unclear.
What are some common mistakes when signing a new employment contract?
“It’s fine, I’ll be paid anyway.” Without a clear pay clause, you could be vulnerable if things go wrong or if the employer delays payment.
"Casual means I don’t have rights.” Even casual employees are entitled to a written contract, and many employment rights (like holiday pay, minimum wage) still apply.
“If I don’t sign now I lose the job.” You have the right to take time, but some employers pressure new staff to sign immediately. That pressure is unfair bargaining.
"The employer will keep a copy." By law, the employer must keep a signed copy, but it pays to have your own copy in case you need it later.
Frequently Asked Questions
Is a verbal job offer enough?
No. In New Zealand, your employer should give you a written employment agreement before you start work.
Can I negotiate a contract if some terms seem unfair?
Absolutely. You can ask for changes or clarifications before you sign. You also have the right to take time to think and even ask for help.
What happens if I sign and only realise later something’s missing or unfair?
Once signed, the contract is legally binding. That said, if a clause is illegal (e.g. pays below minimum wage, deprives statutory rights), it may not be enforceable. Unfair but legal clauses are hard to challenge, so it’s best to catch issues before you sign.
Are trial periods and probation clauses fair?
Yes, but only if they’re clearly defined in the contract (duration, expectations, rights). If they’re vague or overly one-sided, that’s a problem.
A good employment contract is not just paperwork, it’s the foundation of your working relationship. A clear, fair, written agreement protects you as much as it protects your employer. Before you sign: read carefully, ask questions, make sure all important points are clear and written down. If something seems fishy, like vague hours, no pay clause, or pressure to sign, don’t be afraid to push back. A reasonable employer will expect that. If in doubt, get in touch with an expert for a free consultation or a contract review. MathewsWalker.co.nz | 0800 612 355
Disclaimer: The information provided in this blog is for general informational purposes only and should not be considered legal advice. While we strive to keep the information accurate and up to date, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained on the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. For specific legal advice tailored to your situation, please contact a qualified legal professional.
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