When Is a Promise from Your Employer Legally Binding?

A promise from your boss can feel reassuring at the time - whether it’s about a future pay rise, flexible hours, or an upcoming promotion. But what happens when that promise never turns into reality? In New Zealand employment law, some promises can be legally binding - even if they’re made verbally. Others may not hold up if they weren’t formalised properly. So how do you tell the difference?

A promise may become a binding part of your employment agreement if It was clear and specific, if you relied on it when making a decision (like accepting the job or changing your hours), if it was made by someone with the authority to make that promise and, if it aligns with the general terms of your employment.  For example:

• “You’ll get a $2 per hour pay rise after your 3-month review” – If you pass the review and the employer reneges, you may have a case.

• “We’ll move you to a permanent contract if things go well” – If you rely on that and turn down other jobs, it might be enforceable.

Written promises in emails, texts, or even casual documents tend to carry more weight than verbal promises, especially if they come from someone in management. But that doesn’t mean verbal promises are meaningless.  Verbal promises can be binding, especially if there’s a witness to the conversation, you followed up with a written confirmation (e.g. “Thanks for confirming I’ll start working from home Tuesdays from next month”) or, you acted based on that promise, and your employer didn’t object.  

Sometimes, a promise doesn’t need to be made at all; it can be implied based on established company practice. For example:

• If everyone else receives a Christmas bonus and you’ve received one every year for five years, that may become an implied term of your employment.

• If flexible working has been consistently allowed for others in your team, it could be considered an expected condition.

To avoid disputes when your employer promises you something:

Get it in writing: Always try to confirm important promises in writing.

Follow up: Send an email that politely recaps the conversation and what was agreed.

Ask questions: If something sounds vague, ask for clarification.

Review your agreement: See if the promise fits within your current employment terms.

If the promise relates to a core term of your employment - like pay, hours, or location - it’s even more important to have it documented and agreed to formally.

At Mathews Walker, we often help employees clarify whether a promise from their employer is something they can legally rely on. If you’ve been let down or are unsure about your rights talk to an expert.  Mathewswalker.co.nz | 0800 612 355

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