NZ Company: Employment Contract Requirements for Your First Hire (2026)

The employment contract requirement for new NZ companies

Under the Employment Relations Act 2000, every employer in New Zealand must provide a written employment agreement to each employee before they start work. This is not optional. An employee who starts without a signed agreement still has all the legal protections of the Act -- but the employer faces penalties for non-compliance and loses the clarity that a properly drafted agreement provides.

For a new company making its first hire, the employment agreement is typically one of the first legal documents the director has ever had to produce. Most founders underestimate how many specific obligations the agreement must address -- and the consequences of getting it wrong.

What an employment agreement must include under NZ law

The Employment Relations Act sets out mandatory provisions that every employment agreement must contain:

• Names of employer and employee -- the company's full legal name as registered, not a trading name alone.
• Job description -- a genuine description of what the employee will do, not a one-line title. This matters if a dispute arises about the scope of the role.
• Pay and remuneration -- the base rate, whether salary or hourly, and how often it is paid. Must be at or above the current minimum wage (NZ$23.15/hour from April 2026).
• Hours of work -- either agreed hours (for permanent roles) or a statement of how hours will be agreed (for flexible or zero-hours arrangements). The Holidays Act 2003 treatment of pay differs depending on whether hours are fixed or variable.
• Annual leave -- a minimum of four weeks per year under the Holidays Act 2003. The agreement must not offer less.
• Public holidays -- 12 public holidays per year. Employees who work on a public holiday must be paid time-and-a-half plus given a day off in lieu.
• Trial period provision (if applicable) -- a 90-day trial period clause must be included in the original written agreement and signed before work starts to be enforceable. Adding it after work begins is invalid.
• Dispute resolution clause -- must reference the ability to raise a personal grievance under the ERA.

Beyond mandatory provisions, a well-drafted agreement will also address: confidentiality obligations, intellectual property ownership (critical for tech, creative, and consulting companies), restraint of trade (where applicable), termination notice periods, and any specific industry conditions.

The 90-day trial period: what new NZ employers need to know

Many new NZ companies plan to use a 90-day trial period for their first hire. The trial period allows an employer to dismiss an employee within the first 90 days without the employee having grounds for a personal grievance claim on the basis of unjustified dismissal -- provided the trial is properly drafted and signed before work begins.

Common mistakes that invalidate a 90-day trial:

• The agreement is signed after the employee starts work, even by one day
• The trial clause does not include the required wording under the ERA
• The employer fails to follow a fair process even within the trial period (dismissal must still be for a genuine reason)
• The employee has previously worked for the employer in any capacity

Employment lawyers and HR consultants who work with new companies see these errors regularly. Getting the trial period right from the start is one of the highest-value legal investments a new employer can make in their first hire.

KiwiSaver employer obligations from day one

From the first pay run, a new employer must:

• Enrol all new eligible employees in KiwiSaver unless they are already enrolled or opt out within the statutory window
• Make employer contributions of at least 3% of the employee's gross pay
• Deduct employee contributions at their elected rate (3%, 4%, 6%, 8%, or 10%) and remit them to Inland Revenue via PAYE

KiwiSaver obligations begin immediately. There is no grace period for new employers. An employment agreement drafted by an experienced HR adviser or employment lawyer will include the appropriate KiwiSaver clauses and reference the employer's obligations correctly.

Why employment law specialists and HR consultants are in demand from new NZ companies

The combination of ERA obligations, Holidays Act complexity, KiwiSaver requirements, and the 90-day trial period creates genuine demand for specialist advice from new employers. Most new company directors are domain experts in their own field -- not employment law -- and the cost of a poorly-drafted agreement is far higher than the cost of getting it right the first time.

Employment law firms and HR consultancies that offer a "first hire" package -- a properly drafted employment agreement plus a 30-minute briefing on employer obligations -- have a natural fit with newly-incorporated companies. The service addresses a real and immediate need, and it creates a client relationship that extends to future hires, restructures, and performance management situations.

For HR and employment law specialists, FreshFirms for HR consultants delivers a daily feed of newly-registered NZ companies in your region, with director names and contact details where available. Reach new employers before their first hire -- when the need is highest and the relationship is easiest to start.

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