In a recent judgment, the Employment Court revisited the provisions of the Employment Relations Act (the Act) relating to fixed-term agreements: Morgan v Tranzit Coachlines Wairarapa Limited [2019] NZEmpC 66. The Court has provided new guidance as to what will be sufficient genuine reasons based on reasonable grounds to justify the imposition of a fixed-term employment arrangement. The judgment makes it clear that financial uncertainty related to ordinary business risk will not satisfy the requirements.

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By Anthony Kamphorst, Solicitor.