Whether you’re hiring your first employee or expanding your team, having a legally compliant employment agreement is not just a formality — it’s a legal requirement in New Zealand. While it may be tempting to copy a free template off the internet or reuse an old agreement, this approach can expose your business to unnecessary risk.
Here’s why purchasing professionally drafted employment agreements is a wise investment for New Zealand employers.
1. It’s a Legal Requirement in New Zealand
Under the Employment Relations Act 2000, all employees in New Zealand must have a written employment agreement — no exceptions.
The agreement must be:
- Signed by both employer and employee
- Provided before the employee starts work
- Clear about key terms like hours, pay, leave, notice, and the nature of employment (e.g. fixed-term, casual, or permanent)
Failing to provide a compliant agreement can result in penalties of up to $20,000, and leaves your business vulnerable in the event of a dispute.
2. Avoid Costly Mistakes from Generic Templates
Free templates found online or borrowed from other businesses are rarely tailored to your specific needs — and many are out of date or legally non-compliant.
Common issues include:
- Invalid or poorly worded 90-day trial periods
- Missing or unclear duties and expectations
- Incorrect treatment of casual or fixed-term employees
- No clauses for confidentiality, intellectual property, or restraint of trade
A purchased employment agreement from IR Thompson Associates ensures it is legally sound and tailored to New Zealand law.
3. Protect Your Business Interests
A well-drafted agreement can protect your business in key areas such as:
- Confidentiality: Prevent employees from sharing sensitive company information
- Restraint of trade: Limit former employees from competing with your business
- Termination clauses: Provide clarity around notice periods and grounds for dismissal
- Intellectual property: Ensure that any work created by the employee belongs to your business
These protections can be difficult or impossible to enforce if not clearly stated in the employment agreement.
4. Save Time and Reduce HR Stress
Purchasing employment agreement templates from IR Thompson gives you ready-to-use documents that are:
- Compliant with current NZ employment law
- Professionally written and formatted
- Easy to customise for different roles and employee types
We provide bundles that include full-time, part-time, fixed-term, and casual agreements, along with offer letters and onboarding documents.
5. Keep Up With Legal Updates
Employment law changes frequently in New Zealand — recent updates have affected sick leave entitlements, domestic violence leave, pay equity, and holiday pay calculations.
Purchasing your agreements from us ensures you receive:
- The latest legal updates built in
- Ongoing support or updates as laws change
- Peace of mind that your documents are up to date
Final Thoughts
Purchasing a legally drafted employment agreement is a small upfront cost that can save your business thousands in the long run. It shows professionalism, builds trust with new hires, and provides a solid legal foundation for your working relationship.
If you’re hiring, reviewing your documents, or unsure about your current agreements, consider investing in legally reviewed contracts — it’s one of the smartest HR decisions you can make.
Need Help?
If you’re not sure which agreement suits your needs — full-time, fixed-term, casual, or contractor — or want help, call us. We have fixed costs that will provide you with all the necessary tools. As part of the purchase price we work with you to ensure you understand each clause and give you the comfort level to have conversations with your employees.