Why Now Is the Time to Review Your Individual Employment Agreements

Published 12 March 2026 | 3 min read

Employment agreements are often created when an employee joins an organisation and then left unchanged for years. However, with several recent and proposed changes to New Zealand employment law, now is an ideal time for employers to review and update their Individual Employment Agreements (IEAs).

Recent Changes to Employment Law

New Zealand’s employment law landscape is evolving. Recent legislative developments and proposed reforms mean that employment agreements drafted several years ago may no longer reflect the current legal environment.

For example, recent amendments to the Employment Relations Act now require the Employment Relations Authority and Employment Court to reduce or remove remedies where an employee’s behaviour has contributed to a personal grievance. These changes may affect how disciplinary and termination processes are reflected in employment agreements and supporting policies.

In addition, the Employment Relations Amendment Bill proposes a number of significant reforms, including a remuneration threshold that may limit unjustified dismissal claims for employees earning above a specified salary level, as well as a new test to clarify whether a worker is considered an employee or an independent contractor.

Even where legislative changes are still progressing through Parliament, they highlight the importance of ensuring employment documentation remains current and adaptable.

Workplace Practices Have Changed

Workplaces have also evolved significantly in recent years. Flexible working arrangements, hybrid work models, and increased focus on health and safety have changed how many organisations operate.

Employment agreements should accurately reflect how work is performed today. This includes expectations around working hours, remote work, availability, and how workplace policies apply to employees.

If employment agreements still reflect pre-pandemic workplace practices, they may no longer align with how work is actually being carried out.

Consistency Across the Organisation

Over time, organisations often accumulate multiple versions of employment agreements created at different points in time. This can result in employees performing similar roles under different contractual terms.

A periodic review allows employers to standardise agreements where appropriate and ensure consistency across roles, teams, and departments.

A Proactive Approach

Updating employment agreements does not necessarily require a complete rewrite. In many cases, targeted updates to key clauses—such as trial periods, termination provisions, and references to workplace policies—can ensure agreements remain compliant and fit for purpose.

Taking a proactive approach now can help reduce legal risk, support strong employment relationships, and ensure your documentation reflects both current law and the realities of today’s workplace.

If you would like support reviewing or updating your Individual Employment Agreements, the team at EQ Consultants can help ensure your agreements remain compliant and aligned with current employment law.

Written by

Amy Lawson
HR Consulting Manager