With no statutory redundancy pay, the agreement is everything

By Equipo Saplic Published on 12/08/2026 Updated on 12/08/2026

And you have a right to independent advice before signing.

In this guide
  1. Your right to advice
  2. What to check
  3. What the agreement must contain
  4. The trial period trap
  5. Collective agreements
  6. The high-earner threshold
  7. Keep your records

Because New Zealand sets no statutory redundancy entitlement, your employment agreement does more work than in most jurisdictions.

Your right to advice

Before you sign, the employer must give you a copy of the intended agreement and a reasonable opportunity to get independent advice about its terms.

Use it. This is the one moment when the terms are still negotiable.

What to check

  1. The redundancy clause — if there is one, it is binding; if not, no redundancy pay is owed
  2. The notice period — or the absence of one, which means reasonable notice applies
  3. The trial period clause, and whether you are signing before you start
  4. Hours of work, or the arrangements for when work occurs
  5. Whether a collective agreement covers the role

What the agreement must contain

Under Sections 64 and 65 of the ERA, it must include the agreed hours or an indication of arrangements, and a plain-language explanation of how to resolve employment problems — including the 90-day and 12-month grievance deadlines.

The trial period trap

A trial period is only valid if you sign before starting work. If you start first, the trial is invalid and you have full protections from day one.

If an employer asks you to start and sign later, that is worth noting — it works in your favour if a dismissal follows.

Collective agreements

Employers must inform non-union employees about eligibility for collective agreements and union membership within the first 30 days.

The Employment Relations Amendment Act 2026 removed the previous 30-day rule that required new employees to be on the applicable collective terms for their first 30 days.

The high-earner threshold

If your annual remuneration meets or exceeds NZ$200,000, you cannot pursue a personal grievance for unjustified dismissal or disadvantage under the 2026 amendment.

At that level, your contractual terms are the protection — which makes negotiating them considerably more important.

Keep your records

Your signed agreement, any variation, payslips and correspondence. Employers keep records for six years; keep your own too.

Frequently asked questions

Why does my agreement matter so much?
Because New Zealand has no statutory redundancy pay, so the redundancy clause in your agreement is the whole of that entitlement.
Do I have a right to advice before signing?
Yes. The employer must give you a copy of the intended agreement and a reasonable opportunity to get independent advice about its terms.
What makes a trial period valid?
Signing before you start work, and the agreement spelling out the trial, its duration and the employer’s right to dismiss during it.
What must the agreement contain?
The agreed hours or arrangements for when work occurs, and a plain-language explanation of resolving employment problems including the grievance deadlines.
What if I earn above NZ$200,000?
Under the 2026 amendment you cannot pursue a personal grievance for unjustified dismissal or disadvantage, so your contractual terms are the protection.

Sources

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