A Guide to Understanding Different Employment Agreements in New Zealand

HR manager interviewing young man in office

New Zealand is among the world’s fastest-growing economies. Employees in the private and public sectors are integral in supporting this growth. Going it alone in your employment, however, puts you at high risk of being taken advantage of.

The best way to ensure you get favourable terms is by using recruitment agencies based in Auckland. Though you might not get permanent employment right away, there are other agreements the agencies might recommend. Here are some of them:

Casual Employment

These employees work on an irregular basis and do not expect work on subsequent days. Casual employees are entitled to not less than 20 percent of casual loading and at times penalty rates for those working at specific times. Though they are entitled to bereavement leaves and unpaid career’s leave, they do not get annual or paid sick leaves.

Piece Rate and Commission Employment

These employees receive a specific percentage of their sale proceeds and are typically paid once they reach their target. Certain awards provide for the payment of employees on a piece rate or commission basis and give leave and pay rate entitlement. Award-free workers have no required minimum wage and no unpaid or paid leave entitlements.

Probationary Employment

This is typically used at the start of employment to asses an employee’s suitability and capability for the job. Before the start of your work, the nature of the probationary arrangement, length, form of assessment and expected obligations should be clearly understood by the employer and employee. If at the end of the probation employment period, the employee is deemed unsuitable, he/she should get entitlements owing paid out and a notice of termination.

The above information is not only crucial for workers but employers, as well. A good recruitment agency will ensure your company follows the existing labour laws to avoid costly litigation. Thus, there’s no reason for employees and employers to bypass a recruitment agency in their job search and hiring respectively.