As business needs evolve, so too do roles, responsibilities, and working arrangements…
Once someone joins your team, their employment relationship isn’t “set and forget.” It’s important to ensure employment documentation stays current — not just to meet your obligations under New Zealand employment legislation, but to maintain a clear and fair working relationship, employee engagement and workplace culture.
Why Document Changes?
Under the Employment Relations Act 2000, every employee must have a written employment agreement — and that agreement should reflect the actual terms and conditions of their work.
If there are changes to things like:
- Hours of work
- Pay or benefits
- Job title or duties
- Work location
- Employment status (e.g. fixed term to permanent, part-time to full-time)
…it’s important to capture those changes in writing. Documenting changes helps to:
- Avoid misunderstandings later
- Provide a clear record for both parties
- Demonstrate compliance if issues arise (e.g. personal grievances, audits)
- Maintain trust and transparency in the employment relationship
Addendums vs Variations — What’s the Difference?
These are both common tools to formalise changes, but they serve slightly different purposes:
- Addendum:
An addendum is a document added to the original agreement that outlines a new term or arrangement — such as a temporary secondment, a remote working trial, or a one-off bonus. It leaves the core agreement unchanged and is useful for short-term or specific changes. - Variation (or Letter of Variation):
A variation is used when a term of the existing agreement needs to be updated permanently — for example, a promotion, salary change, or reduction in hours. It requires mutual agreement and must be signed by both the employer and employee.
In both cases, changes must be discussed and agreed to, not imposed.
When Do You Need a New Employment Agreement?
Sometimes a simple variation or addendum isn’t enough. A new employment agreement should be used when:
- The role changes significantly (e.g. moving from a junior to a management position)
- The employee transitions between employment types (e.g. from fixed-term to permanent)
- There is a transfer to a different legal entity or business structure
- A restructure results in substantial changes to terms and responsibilities
Starting fresh ensures all key terms are current, consistent, and legally sound. Always, accompany a new employment agreement with a letter confirming the changes.
Don’t forget, when a role changes significantly — for example, new responsibilities, reporting lines, or a shift in focus — it’s important to also update the job description alongside. This ensures that expectations are clear and aligned with the terms of employment.
A revised job description should be:
- Reviewed with the employee
- Agreed upon in writing
- Attached to any variation or new agreement where appropriate
Final Thoughts
Keeping employment agreements up to date is not just a legal box-tick — it’s an important part of managing a professional and fair workplace. Regularly reviewing terms and properly documenting changes helps protect both you and your team, while supporting healthy, transparent working relationships and workplace culture.
If you’re unsure about what type of documentation is appropriate for a specific change, we’re here to help.
For tailored advice and practical guidance, feel free to reach out to us at hello@hellomonday.co.nz or give us a call on 09 377 5200.