Employment agreements are a very important aspect of an employment relationship between an employee and an employer. They ensure an employee and an employer know exactly what is expected of them, and what their entitlements are. They are the first place to go when you are unsure of anything in the employment relationship, for example leave entitlements and notice periods.
It is important that an employment agreement is in writing, as if there is no written agreement, an employer can be penalized under Section 64 of the Employment Relations Act 2000 (“the Act”) up to $10,000.00 for individuals, and $20,000.00 for companies.