# Collective and individual employment agreements Official source: https://www.employment.govt.nz/starting-employment/employment-agreements/collective-and-individual-employment-agreements Scanned: 2026-06-07T03:31:31.402Z Use this as a current official guidance reference, not as a substitute for legal advice. ## Page Text Home Starting employment Employment agreements Collective and individual employment agreements Employment agreements Starting employment Rights and responsibilities Types of worker Hiring Employment agreements Creating an employment agreement Collective and individual employment agreements Negotiating and accepting as an employee Offering and negotiating as an employer Restraint of trade Employees Collective and individual employment agreements A potential employer must give you either a collective employment agreement or an individual employment agreement. You can choose whether you enter into: a collective agreement, or an individual employment agreement. Collective employment agreement A collective employment agreement is an agreement between an employer An individual or organisation that hires 1 or more employees and contracts them to work in exchange for wages or salary under a ‘contract of service’ (commonly called an ‘employment agreement’). and a registered union An organisation that supports and advocates for employees in the workplace. Unions bargain for collective agreements and help employees with information and advice about work-related issues. that covers employees Any person, whatever their age, who is employed by an employer to do any work for hire or reward under a ‘contract of service’ (commonly called an ‘employment agreement’). , who are members of the union, within the employer’s workplace. If you are a member of a union, you will be employed under a collective employment contract, if there is one. This means that your union negotiates the terms of your employment on your behalf, including things like pay scales, leave and other benefits of employment. Union membership If you're covered by a collective agreement, you can also have additional individual terms. These should be set out in writing and signed by you and the employer. Collective agreements Individual employment agreement Individual employment agreements are negotiated between an employer An individual or organisation that hires 1 or more employees and contracts them to work in exchange for wages or salary under a ‘contract of service’ (commonly called an ‘employment agreement’). and an employee Any person, whatever their age, who is employed by an employer to do any work for hire or reward under a ‘contract of service’ (commonly called an ‘employment agreement’). and define the terms and conditions of your employment. Your individual employment agreement applies only to you. If you're negotiating an individual employment agreement and the employer also has a collective employment agreement, they must tell you: there is a collective agreement and give you a copy that you can join the union that is party to the collective agreement how to contact the union that if you join the union, or are already in the union, you will be bound by the collective agreement. If you choose to enter into an individual employment agreement, the employer will only tell the union about this if you want them to. If you agree that your employer can tell the union, they must tell them as soon as practicable. If there is more than 1 collective agreement When there is more than 1 collective agreement, your employer must tell you this. The collective agreement that applies to your job is the one that covers most of the other employees who do the same work as you at your workplace. Your employer must give you the above information for this collective agreement. What must be in your individual employment agreement Some things (like 4 weeks’ annual holidays) do not need to be in the employment agreement, but the employer must still provide them by law. If you agree better terms and conditions than the minimum rights, your employer should record these in the employment agreement. Creating an employment agreement Your employer must also inform you of your entitlements under the Holidays Act 2003, and that you can get further information about your holiday entitlements from a union An organisation that supports and advocates for employees in the workplace. Unions bargain for collective agreements and help employees with information and advice about work-related issues. (if applicable) or by contacting us. You are entitled to minimum employment rights and your employer cannot give you less than what is in the law even if you’ve agreed. Employee rights and responsibilities The agreement can include other clauses, like the notice period required for resignation When an employee tells their employer they will be leaving their job. and termination When an agreement, contract or employment relationship ends. , a trial period provision, or an annual closedown. The individual employment agreement must include: the names of the employer and the employee (to make clear who are the parties to the agreement) a description of the work to be performed (to make clear what the employee is expected to do) an indication of the place of work the agreed hours or an indication of the hours that the employee will work; this includes agreement on any or all of the following: the number of hours the start and finish times or the days of the week the employee will work. Hours of work the wage rate or salary payable (must be equal or greater than the relevant minimum wage) and how it will be paid (if the employee will not be paid in cash, this should be in the employment agreement or must be agreed in writing somewhere else) Types of pay a statement that the employee will get (at least) time-and-a-half An employee’s pay for the time they worked multiplied by 1.5. payment for working on a public holiday Public holiday pay for relevant employees, an employment protection provision to apply if the employer’s business is sold or transferred , or if the employee’s work is contracted out any other matters agreed on, such as trial periods, probationary arrangements, or availability provisions the nature of the employment if the employment is fixed term Employment that ends on a specified date or when a particular event occurs, for example, covering for parental leave or seasonal work like fruit-picking. Types of worker a clear and plain explanation of how to get help to resolve employment relationship problems Any problem relating to, or arising out of, an employment relationship, including disputes and personal grievances. including: a statement that most personal grievances must be raised within 90 days and, a statement that sexual harassment personal grievances An action that an employee can take against a current or former employer when they have an employment issue they cannot resolve. must be raised within 12 months. Problems in the workplace Some things (like 4 weeks’ annual holidays) do not need to be in the employment agreement, but the employer must still provide them by law. It is advisable to have the time of the breaks in the employment contract. Rest and breaks If an employee and employer agree to better terms and conditions than minimum rights contained in the Act, these should be recorded in the employment agreement. Record-keeping An employment agreement can contain any other terms and conditions that the employee and employer have agreed to, for example, the notice period required for resignation and termination, a trial period provision, an availability provision, whether the employee can be made to work on a public holiday or an annual closedown. Employers need to think carefully about the needs of the business before they draft an employment agreement. For example, if there’s a possibility that they may need to cancel an employee’s shift, then the reasonable compensation and period of notice for this needs to be in the employment agreement. What an employment agreement can include [PDF, 703 KB] The employment agreement builder A tool to help employers create tailored employment agreements for their employees. It covers what they must do by law and explains how to avoid common mistakes. can provide you with information on mandatory and optional clauses. Employment agreement builder - Business.govt.nz (external link) Contact us Published: 18 December 2023 Last modified: 11 March 2026 Written for: Employees Share this page: Print this page: