Different types of employment agreements and arrangements
Fixed-term employment agreements
What is a fixed-term agreement?
This is when you and your employer agree that your employment agreement will end on a specific expiry date or when a specific event occurs or when a specific project is completed.
When fixed-term agreements are allowed
A fixed-term agreement is allowed only if:
- there’s a genuine reason, based on reasonable grounds, for having a fixed term (for example if you’re filling in for a permanent employee who’s on leave, or doing seasonal work like fruit picking), and
- the employer tells you this reason before employing you, and tells you how and when your fixed-term agreement will end.
- If your fixed term agreement is being extended (“rolled over”) more than once, it is more likely you’re a permanent employee (see: “Identifying whether you’re a casual or permanent worker”).
Note: It won’t be a “genuine reason” if your employer uses a fixed-term agreement to exclude or limit your rights under the Employment Relations Act or the Holidays Act, or to find out whether you’re suitable for a permanent job.