Getting your head around agri employment contracts

Whether you’re employing workers on a permanent, fixed term, or casual business, all employees must, by law, have a written individual employment agreement. This includes people like relief milkers who are only on a farm irregularly (casually) or for a set period of time (fixed term).

The agreement must set out the basic terms and conditions of employment, including what each party’s rights and responsibilities are, and what is expected of them. It can also protect both the employer and employee if things don’t work out.

Inclusions

An employment agreement must include the names of the employer and employee, a description of the work, place of work, agreed hours (or indication of the hours of work) and the wages/salary to be paid. The agreement must also comply with the Holidays Act 2003 and explain the process for employment grievances.

Trial periods

Trial periods can only be used by employers with fewer than 20 employees. If there is a trial period in an employment agreement, it should only be for up to 90 days from the start of employment.

If you and the employee agree to a trial period, this must be included in the agreement and signed by the employee before he or she starts any work for you (even 5 minutes after starting has been held by the courts to be too late). This employee must also be a new employee which means he or she must never have worked for you, even on a casual basis, before.

Agreements

Federated Farmers provide an array of employment agreements which can be bought online – permanent and fixed term employment agreements, a casual employment agreement, and a contract milking agreement. These are updated regularly and contain all the essential terms you need in the contract. If you need something more bespoke then your local rural professional (lawyer, accountant, farm consultant) can help you draft an agreement that meets your specific industry/job needs.

Once work has commenced

As an employer you must keep accurate records of hours worked, wages payable (and paid), and leave taken for each employee. You are legally required to keep these records for at least seven years, so it pays to have a good, secure record keeping system.

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How to prepare for the end of financial year

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The end of the financial year is fast approaching, so if you’re balance date/end of financial year is 31 March, there are a few things you need to do to help us prepare your financials. Take a stocktake If your business sells products or has stock, you’ll need to do a stocktake on 31 March. If you’re a business that sells products, then you need to take a stocktake of your physical inventory. If you’re a farmer, then you need to take a physical livestock tally. Send in your EOY papers Compile a folder (digital or hard copy) with a copy of the following documents: Bank statement that shows the balance on 31 March 2025 for all your bank accounts and loans. Insurance invoices. ACC invoices. Loan statements for the year (if applicable). Any new loans or refinancing documents. Invoices for assets purchased and sold. GST workings and reports. Submit the online questionnaire You’ll also need to fill out and submit the online questionnaire. You should receive an email from us in April/May, with a link to fill out and submit the questionnaire. If you haven’t received an email with the link by the end of May, let us know.

Supporting the Heart of Dargaville and Whangārei Communities

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Most people agree that optimising your business is a good idea and spend hours looking at optimising the supply chain, storage, overheads etc. However, they forget that people are one of the most critical elements in your business. By providing a caring, supportive workplace for employees you also drive the success of your business. Studies show happy workers are productive workers and, as an employer, it’s a no-brainer to provide a workplace where employees feel valued, and where they can flourish. Here are five key ways to build employee relationships, nurture your team, and create a great workplace for your employees: 1. Invest in your employees This doesn’t mean ‘casual Friday’s’ or a pizza night once a month. This is about offering your employees access to training programmes, workshops, conferences, and mentorship programmes. It’s about the professional growth of your employee and how you can enhance their skills and make them feel truly valued as team members. 2. Create a positive work environment Creating a positive work environment is about cultivating a workplace culture that feels positive and supportive of your employees. Be open and transparent with your employees, listen to their feedback and have a strong focus on employee wellbeing. This could include offering flexible working arrangements, benefits such as health insurance, and other perks. 3. Recognise and reward your employees When an employee goes above and beyond, make sure your recognise and reward them. This could by through a performance bonus, employee-of-the-month programmes or even extra time off in lieu. Feeling valued comes partially from feeling rewarded and can be an amazing motivator. 4. Give employees autonomy One of the key ways employees feel trust, is by being given autonomy. Being trusted to come up with their own solutions, processes, and ideas is key to making people feel as if they ‘own’ their role. This helps employees feel fully involved and also brings new ideas, solutions, processes, and efficiencies to the table. 5. Put wellbeing at the heart of your culture Life is stressful. And work-life can be stressful. A well though out wellbeing programme can help your employees manage stress and, in turn, benefits your business. A wellbeing programme is different for each business but some ideas could be checking in with team members, creating a ‘ask for help’ culture, flexible working arrangements including work-from-home days, and offering mental health support. Making sure you’re a caring and supportive employer is vital to your business strategy. With a team who feel valued, nurtured, and encouraged, you’ll all be happier and more productive.