What are my Rights as a Fixed- Term Employee in New Zealand?

Fixed-term employment can be a good option if you're working on a project, covering someone on leave, or just trying to get your foot in the door. But it’s important to know your rights, especially because some things are different from a permanent contract. In this post, we’ll break down what you’re entitled to as a fixed-term employee, what happens if you’re dismissed early, and what should happen when your contract ends, or if your employer wants to extend or make it permanent.

What Is a Fixed-Term Employment Contract?

A fixed-term contract means your job has an agreed end date or is tied to a specific event, such as covering for parental leave or a seasonal project. It’s not permanent, but you still have legal protections.

A fixed-term contract should include a set end date and a genuine reason, written into the employment agreement, for why the job is fixed-term. The fixed term period and the reason for it must be agreed in writing before you start the job.

What Legal Entitlements Do Fixed-Term Employees Have?

The good news is that under New Zealand employment law, fixed-term workers have nearly all the same rights as permanent employees. As a fixed-term employee, you are entitled to:

• Minimum wage (or higher, if agreed),

• Paid rest and meal breaks,

• Annual leave (usually paid out at the end if you’re on a short-term contract),

• Sick leave (once you meet the criteria, usually after 6 months),

• Bereavement leave,

• Parental leave (if you meet the eligibility),

• Health and safety protections, and

• Protection from unfair treatment or discrimination.

You are also protected by the following legislation:

• The Employment Relations Act 2000

• The Holidays Act 2003

• The Human Rights Act 1993

• The Minimum Wage Act 1983, among others.

  
  

Fixed-term employees must not be treated less favourably than permanent employees just because their job is temporary.

Are There Any Differences From Permanent Employment?

The key differences are as follows:

	Fixed-Term Contract	Permanent Contract
Job Duration	Ends on a set date/event.	Ongoing with no end dat.e
Termination	Usually ends automatically unless renewed.	Must be terminated with notice or agreement.
Renewal	Must be agreed again in writing.	N/A
Redundancy	No redundancy compensation unless agreed.	May be entitled depending on terms.

What If You're Dismissed Before the Contract Ends?

This is where things get tricky, and where some employers get it wrong. Your employer cannot just end your contract early without a valid reason or a fair process.  Ending a fixed-term contract early is a dismissal, and all the usual legal rules apply. Your employer must have a genuine reason, such as serious misconduct or redundancy, and have followed a fair process including a proper investigation and chance for you to respond. If they don’t do this properly, you may have a case for unjustified dismissal.  If you're dismissed early, ask for the reason in writing and seek advice.  

What Happens When the Fixed-Term Period Ends?

At the end of your contract, your job typically ends automatically, but your employer must follow what is detailed in the agreement and pay out any outstanding entitlements like unused annual leave or final pay. If your employer wants to extend the contract or make it permanent, they must discuss it with you, offer a new written agreement before the original agreement ends, and explain any changes to terms or conditions. If they keep you working past the end date without a new written agreement, you might be considered a permanent employee by default.

Can You Be Kept on a Fixed-Term Indefinitely?

No, not legally. Employers can't just keep renewing fixed-term contracts without a valid reason each time. If there's no genuine reason, or it seems like they’re using fixed-term contracts to avoid giving you permanent status, you might actually be a permanent employee in disguise. In that case, you could be entitled to ongoing employment and the benefits that come with permanency, like redundancy compensation or longer notice periods.

FAQs

Can my employer end my fixed-term job early without notice?

No. They must have a valid reason and follow a fair dismissal process. If not, it's likely an unjustified dismissal.

Do I get sick leave or annual leave on a fixed-term?

Yes. If your contract is longer than six months, you should receive sick leave. Annual leave might be paid out as holiday pay (usually at 8%) if the contract is short-term.

What if I keep working after the contract ends and no new contract is signed?

You may become a permanent employee by default. The employer must provide a new agreement in writing before extending the contract.

Can I ask to be made permanent?

Yes! And if you’ve been doing the job well and there's ongoing work, it’s a fair request. They don’t have to say yes, but they must consider it in good faith.

Is redundancy pay required when a fixed-term ends?

Not usually. But if your contract includes a redundancy clause, then you might be entitled. Always check your employment agreement.

Fixed-term contracts can offer great experience and opportunities, but they come with unique legal rules. Just because your job is temporary doesn't mean your rights are.  You deserve fair treatment and you are entitled to minimum employment rights.  You can still challenge unfair dismissal, even on a fixed term, and you should be consulted properly before renewal or any changes to your contract.  Always get your contract in writing, and if something seems off, get advice early.

If you're unsure about your fixed-term situation or think you've been treated unfairly, get in touch for a free consultation today.  MathewsWalker.co.nz | 0800 612 355

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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.