Understanding a job offer and employment agreement

A verbal offer and the written agreement

Most offers start with a phone call or an email. Every employee in New Zealand must have a written employment agreement, and the usual next step is an offer letter with the draft agreement attached. Until you have read it you do not know the full terms, so thank them, say you are keen, and ask for the written agreement.

Two details are worth knowing early. If you start work without signing, but without saying you disagree, the agreement could still apply to you, so read it before your first day. And an offer can be made subject to checks such as references or a criminal record check (which needs your written approval). If the conditions are not met, the employer can withdraw the offer.

What the agreement must include

For an individual employment agreement, Employment New Zealand lists what it must contain at a minimum:

• the names of you and your employer
• a description of the work
• an indication of where you will work
• the agreed hours, or an indication of the hours you will work
• the wage rate or salary, at least the minimum wage, and how it will be paid
• a plain explanation of how to resolve employment relationship problems, including that most personal grievances must be raised within 90 days, and sexual harassment grievances within 12 months
• a statement that you will be paid at least time and a half for working on a public holiday
• an employee protection provision, setting out what happens if the business is sold or transferred, or your work is contracted out
• if the job is fixed term, that fact and the genuine reason for it

Anything else you agree, such as a trial period, an availability clause or a restraint of trade, has to be written in too. An employer who does not provide a written agreement can face a $1,000 infringement fee, or penalties of up to $10,000 for an individual employer and $20,000 for a company. Since 30 March 2025, if you ask for a copy of your agreement, your employer must provide it within 7 working days.

Your right to advice before you sign

Before you start work, your employer must give you a copy of the agreement and time to read it and get advice about it. You can ask them to explain anything you do not understand, take it away to read carefully, and ask for advice from someone you trust, such as a representative, a lawyer or a parent. Employment New Zealand also takes calls on 0800 20 90 20.

Employers and employees must negotiate in good faith. For the employer, that includes discussing and considering compromise on terms you are unhappy with, and making sure unfair bargaining does not take place, such as pressure to accept. Once you understand the agreement you can accept it as it is, ask for changes or extra terms, or turn it down.

Individual or collective agreement

Most people sign an individual agreement, negotiated between you and the employer. A collective agreement is negotiated between an employer and a registered union and covers employees who are members of that union. If one covers the work you are offered, the employer must tell you it exists and give you a copy, tell you that you can join the union and how to contact it, and explain that joining would bind you to the collective. Union membership is your choice. Since 21 February 2026, new employees no longer have to start on the collective agreement's terms for their first 30 days.

Trial periods and probation

A trial period lets an employer end your employment during the first 90 days, and you generally cannot raise a personal grievance for unjustified dismissal if they do. The conditions are strict:

• It lasts no longer than 90 calendar days, from the very start of your employment.
• You must be new to that employer.
• It must be written into your agreement, and you must sign the agreement before you start work. If you sign after starting, the trial period is not valid.
• Notice ending your employment must be given within the trial period, although your last day can fall after it.

You can still challenge a trial dismissal if the required notice was not given, you started work before signing, you were not given a reasonable chance to get independent advice before signing, or the agreement does not mention a trial period. Every other kind of grievance, such as discrimination or harassment, stays open, and during the trial you have the same rights as any other employee. If you hold an Accredited Employer Work Visa, Immigration New Zealand does not allow a trial period in your agreement.

A probationary period is different. It has no set maximum length and must be stated in the agreement, but you keep your personal grievance rights, so a dismissal without fair feedback, training or assessment can be challenged. A probationary period cannot follow a trial period.

Hours, availability and shifts

Your hours must be agreed in writing. Three clauses decide how predictable your pay will be:

• Guaranteed hours are what the employer has committed to, and the hours to budget around.
• An availability clause requires you to be available beyond your guaranteed hours. It is only valid if the agreement specifies guaranteed hours, the employer has genuine reasons based on reasonable grounds, and you get reasonable compensation. Without a valid clause you can say no to work outside your guaranteed hours without being disadvantaged.
• Shift cancellation needs a clause setting out reasonable notice and reasonable compensation. Without one, a cancelled shift must be paid as if you had worked it.

A clause restricting a second job needs a genuine reason, written into the agreement.

Restraint of trade

A restraint of trade clause stops you, after you leave, from working in a similar business in a way that could affect your old employer. The two main types are non-competition and non-solicitation clauses. Employment New Zealand's guidance, updated in June 2026, is that restraints should be reasonable or they may not be enforceable, and are usually limited to a specific area and a specific period after your job ends. A breach can lead to an injunction or damages through the Employment Relations Authority or the Employment Court.

Because a restraint affects your next job rather than this one, check how long it lasts, what area and work it covers, and why the employer needs it. A broad or long restraint is a good reason to get independent advice before signing.

Notice periods

There is no set legal notice period in New Zealand. If the agreement states one, that is the notice that must be given, whether you resign or the employer ends your employment. If it is silent, reasonable notice applies, and Employment New Zealand says 2 to 4 weeks is generally seen as reasonable, depending on things like how specialised the job is and industry practice. Check whether the period is the same both ways.

Salary, wages and KiwiSaver: on top or inside?

A wage is paid for the time you work, usually by the hour. A salary is normally a fixed amount a year, with the expected hours in the agreement. Either way the minimum wage applies to every hour you work: from 1 April 2026, $23.95 an hour for adults and $19.16 for the starting-out and training rates. If you are salaried and work long weeks, divide your pay by the hours you actually work to check. Your employer must keep records of your hours and pay.

From 1 April 2026 the minimum employer KiwiSaver contribution is 3.5% of your gross salary or wages, rising to 4% from 1 April 2028, and employer superannuation contribution tax (ESCT) is deducted from it. An agreement can handle the contribution in two ways:

• On top of your pay. A $70,000 salary comes with an employer contribution of $2,450 a year (before ESCT) in addition to the $70,000.
• Inside a total remuneration package. The contribution is part of the package figure, so your gross salary is lower than the number quoted. Inland Revenue says such a package can be negotiated, that contributions must be paid on top of a package that does not already include them, and that you must still get at least the minimum wage excluding the contribution.

If the agreement says "total remuneration" or "package", ask what the gross salary is once the KiwiSaver contribution is taken out, so you compare like with like.

Check the take-home pay

The salary in the agreement is before tax. What reaches your account is that figure less PAYE, the ACC earners' levy, your own KiwiSaver contribution and any student loan repayments, so two offers a few thousand dollars apart can land much closer than they look. The free Offer Comparer shows the take-home pay of two offers side by side at 2026/27 rates, and adds employer KiwiSaver, health cover and a vehicle so you can see what each is really worth.

Asking questions or negotiating before you sign

Asking for time and asking questions are ordinary parts of accepting a job. A short, specific message works well:

Then put your questions in one message, so the employer can answer everything at once:

If something differs from what was discussed, ask for the document itself to be changed, because a promise that is not in the agreement is hard to rely on later. To negotiate pay or other terms, the words and timing are in Salary negotiation in New Zealand. Once you have signed, keep a copy of the agreement with the date, the agreed salary and anything that was promised.