Individual employment agreement

Why the IEA carries more weight than an Australian contract

With no award system underneath it, the New Zealand employment agreement does the work that awards do in Australia: beyond statutory minimums (minimum wage, Holidays Act leave, parental leave), the agreement *is* the terms. Redundancy compensation exists only if the agreement provides it; a trial period exists only if the agreement contains it, signed before day one; availability, deductions and restraint clauses live or die on their drafting. Template agreements copied between businesses are where a surprising share of New Zealand employment risk originates.

What must be in writing

The Act requires a written agreement and prescribes minimum content: the names of the parties, a description of the work, an indication of where and when it is performed, wages or salary, and a plain-language explanation of how employment problems can be resolved, including the 90-day window for personal grievances. Employees must be given a reasonable opportunity to seek independent advice on the terms before signing, and good faith applies to the negotiation itself.

Individual versus collective

Where a union collective agreement covers the work an employee does, a union member's terms come from the collective; non-members sit on IEAs. The two systems interact through good-faith bargaining obligations rather than an approval tribunal: New Zealand has no Better Off Overall Test because there is no award baseline to test against. The employer discipline is the same in both countries though: know which instrument governs each employee, and keep the written terms matching the actual practice.