Employment agreement reviews are an important risk-management exercise for New Zealand employers. Employment agreements drafted even two or three years ago may no longer be compliant and can expose employers to unnecessary legal and operational risk due to the evolving employment law landscape in New Zealand, driven by legislative change and case law developments.

Regularly reviewing employment agreements helps ensure that contractual terms remain lawful, enforceable, and aligned with how an organisation actually operates.

Why employment agreement reviews matter

Employers should not assume older employment agreements remain fit for purpose. For example:

• Employment agreements that do not reference the 12-month timeframe for raising personal grievance claims for sexual harassment may allow employees to pursue claims that would otherwise be out of time.
• Changes to the Wages Protection Act 1983 require employers to consult with employees before relying on a general deductions clause in an employment agreement to make deductions from wages.
• Recent case law has confirmed that forfeiture clauses in employment agreements that penalise employees for failing to comply with notice provisions in their employment agreements are unlawful.

These examples illustrate how employment agreements can quickly become outdated and expose employers to unnecessary risk, even where they appeared compliant at the time they were drafted.

Beyond compliance: reflecting how your organisation operates

Employers should also consider whether their agreements reflect the organisation’s current culture, working practices, and expectations. In 2026, employment agreements increasingly need to address modern workplace realities, including:

• Hybrid and remote working arrangements
• Workplace surveillance, monitoring, and data collection
• Social media use
• The use of artificial intelligence in the workplace

Employment agreements are relied on at critical stages of the employment relationship and should include clear, workable provisions dealing with matters such as medical incapacity, suspension (for medical or disciplinary reasons) and force majeure events including natural disasters, global conflicts, and epidemics.

Upcoming employment law changes

The Government has proposed significant changes to New Zealand’s employment laws, including reforms to the worker status test and the introduction of a potential salary cap on personal grievance claims. These changes are expected to be passed and come into force in 2026.

Employers should plan now to review their employment agreements considering these proposed reforms to ensure their documentation remains fit for purpose and does not create unintended exposure.

Need support reviewing your employment agreements?

If you would like advice on reviewing or updating your employment agreements, email us and our employment team can assist with identifying risks, implementing changes, and future-proofing your documentation for the evolving employment law landscape.