In New Zealand, it is not technically illegal to work without an employment contract. However, it is strongly recommended that employees and employers have a written agreement in place to outline the terms and conditions of employment.
Employment contracts provide clarity and protection for both parties. They ensure that employees understand what is expected of them and what they are entitled to receive, such as pay, holidays, and other benefits. Employers benefit from having clear guidelines to follow when managing employees and resolving disputes.
Without a contract, there may be confusion and misunderstandings concerning employment terms and entitlements, leading to conflict and legal disputes.
It is worth noting that some industries may require specific employment agreements, such as collective agreements for unionized workers or employment agreements with specific legal requirements, such as those in the health and safety sector.
In situations where there is no employment contract, verbal agreements or other forms of written documentation can be used to outline employment terms. However, verbal agreements can be difficult to enforce and can lead to misunderstandings.
Employment contracts are an important part of the employment relationship, providing clarity and protection for both employees and employers. While not legally required, it is strongly recommended that all parties have a written agreement in place to avoid any confusion or legal disputes.