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Fixed-Term or Casual Employment Breaches

What It Is

A fixed-term or casual employment breach occurs when an employer uses short-term or irregular work arrangements to deny employees the rights and benefits of permanent employment.

While fixed-term and casual arrangements are lawful, they must comply with strict statutory conditions. A fixed-term agreement must have a genuine reason based on reasonable grounds and must be in writing, specifying when and why it ends. A casual employee must have genuine flexibility — if the employee works regular hours or ongoing patterns, they may actually be a permanent employee.

Employers who misuse these arrangements risk breaching the ERA 2000, Holidays Act 2003, and Minimum Wage Act 1983.

Your Rights and the Law

  • ERA 2000 s 66(1)–(2) — A fixed-term employment agreement must:
    • Be in writing.
    • State the genuine reason for the fixed term.
    • Specify the way and reason it will end.
  • ERA 2000 s 66(5) — If the above are not met, the employee is deemed permanent.
  • ERA 2000 s 6(1) — Courts must look at the real nature of the relationship, not just the label.
  • Holidays Act 2003 — Entitlements apply to all employees, including casuals who work regularly.
  • Jinkinson v Oceana Gold (NZ) Ltd [2009] NZEmpC 102 — Key case clarifying the distinction between casual and permanent employment.
  • Labour Inspector v McCallum Peterson Ltd [2022] NZERA 215 — Found employer used repeated short-term contracts to avoid leave entitlements.

Process (How a Case Generally Proceeds)

  1. Review Your Agreement – Check whether your contract is written and clearly specifies why and when it ends.
  2. Assess Work Patterns – Regular hours or expectations may indicate permanent employment.
  3. Raise a Personal Grievance – For disadvantage or unjustified dismissal if the term was not genuine, under ERA s 103(1)(b) or (a).
  4. Mediation – The Ministry of Business, Innovation & Employment (MBIE) provides free mediation to seek early resolution. The process is voluntary and both parties must agree to attend. Most cases reach resolution at Mediation.
  5. Employment Relations Authority Investigation – If unresolved, a Statement of Problem is filed; the Authority investigates and issues a written determination.
  6. Employment Court Appeal – Possible for errors of law or procedure.

Potential Outcomes / Remedies

  • Declaration that the employment is permanent.
  • Lost wages and compensation (ERA s 128, s 123).
  • Back pay for holiday and leave entitlements under the Holidays Act 2003.
  • Penalties for misuse of fixed-term or casual arrangements (ERA s 4A).
  • Reinstatement to permanent employment.

Take Action Today

If you’ve been working regular hours under a “fixed-term” or “casual” contract, you might actually be a permanent employee entitled to full rights and protections. Get in touch with us to arrange a no-obligation consultation about your situation. We’ll assess your case, explain your options, help gather evidence, request your employment file, and help you pursue the justice and compensation you deserve. Our advocates will review your contracts, rosters, and pay records to assess your true employment status and help recover all entitlements owed to you.