Newsletter - April 2025
April is here, and with it comes the long Easter weekend, the end of daylight saving, and the realisation that we’re already a quarter of the way through the year! As the seasons shift, it’s also a good time to take stock of any legal matters that may need attention—whether in business, employment, family, property, or immigration.
In this edition, we explore the enforceability of restraint of trade clauses in employment agreements, provide some key immigration updates, and offer some key thoughts on understanding a commercial deed of lease.
At Turner Hopkins, we’re here to help you navigate the legal landscape with confidence. If you have any questions, don’t hesitate to get in touch.
Wishing you a happy and restful Easter break!
Understanding a Deed of Lease
Property Law
Signing a commercial lease?
It’s crucial to understand what you're agreeing to before putting pen to paper. A Deed of Lease is a legally binding document that sets out the terms and conditions of leasing a property. Here’s a quick rundown of what you need to know, although as always, speak to the team to understand your personal circumstances.
Key Terms to Look Out For
Who’s Involved? The lease will clearly name the landlord (lessor) and tenant (lessee).
The Property – A description of the leased space, including boundaries and any shared areas.
Lease Term – The start and end dates, plus any renewal options.
Rent & Outgoings – How much rent you’ll pay, how often, and what other costs (like rates and insurance) you’re responsible for.
What Can You Use It For? The lease will outline permitted uses and any restrictions.
Maintenance & Repairs – Who looks after what? This covers everything from basic upkeep to structural repairs.
Insurance – Who needs to insure the premises and contents, and what liability coverage is required?
Assignment & Subletting – Can you transfer the lease or sublet the space? If so, under what conditions?
Exiting the Lease – How renewals, termination, and notice periods work.
What If Things Go Wrong? The lease outlines what happens if either party breaches the agreement, including financial penalties and eviction processes.
What About Guarantees?
If you’re leasing as a company, the landlord may require a personal guarantee—meaning a director or shareholder agrees to cover unpaid rent or damages if the business can’t.
Some landlords may accept a bank guarantee or security deposit instead. Guarantees can extend beyond the lease term, so it’s essential to negotiate the terms carefully.
Need Advice?
A lease is a long-term commitment with serious legal and financial implications. Whether you're a landlord or a tenant, getting expert legal advice before signing can save you time, stress, and money down the track.
If you have questions about a lease agreement, the team at Turner Hopkins is here to help. Get in touch today!
Restraint of Trade
Employment
Restraint of trade clauses are a common feature in employment agreements, but how enforceable are they in practice? This is a question we frequently encounter, and the legal position is far from straightforward. The enforceability of such clauses depends on various factors, including the specific wording of the agreement and the unique circumstances of each case.
A recent case involving NZME and a former employee provides insight into how the Employment Relations Authority (ERA) approaches these matters. NZME sought an injunction to prevent its former employee from working for a competitor during the three-month restraint of trade period stipulated in the employment agreement.
Key Legal Considerations
The ERA examined several critical issues in assessing NZME’s application:
Proprietary Interest – To enforce a restraint of trade, an employer must demonstrate that it has a legitimate proprietary interest to protect. In this case, the question was whether the employee’s knowledge of NZME’s marketing and advertising sales packages constituted confidential information. If this knowledge was already known to customers or readily available in the market, it would not qualify as a proprietary interest.
Strategic and Planning Knowledge – NZME also argued that the employee had access to high-level strategic and planning information, justifying the enforcement of the restraint. However, the evidence suggested that this type of information was primarily held by the company’s senior leadership team (SLT) rather than the employee in question.
Breach of the Restraint Clause – While NZME had an arguable case that the employee had breached the restraint of trade clause, the ERA ultimately declined to grant the injunction. This decision highlights the fact that even where a breach is arguable, enforcement is not guaranteed, and each case will turn on its own facts.
What This Means for Employers and Employees
Restraint of trade clauses must be carefully drafted. Employers should ensure that any such clause is reasonable in scope and directly tied to protecting a legitimate business interest. Employees, on the other hand, should be aware of their rights and seek legal advice before agreeing to or challenging a restraint clause.
Note: this article is for general informational purposes only and should not be considered legal advice. If you have concerns about a restraint of trade clause in your employment agreement contact Catherine Pendleton.
Work Visas - Market Rates
Immigration
Over the course of the last few years, the use of wage rates as a proxy for skill were gradually introduced into our visa system. These wage rate thresholds made it easier for INZ to process applications but at the same time created a cycle of wage inflation, particularly as employers jostled to bring over high volumes of staff when our borders opened in 2022.
Fast forward to 2025 and the application of minimum median wage rates became unworkable and so to remedy the situation the current Government has removed them (for Work Visas only at this stage), opting to instead use a market rate remuneration assessment – something we did for decades before median wages were introduced.
Work Visa applications are now required to have a pay rate at or above the minimum adult wage, and then a rate that reflects the market conditions for that role. It makes sense, because the market determines what candidates should be paid, however applying that in a visa application, when you are trying to streamline the process comes with its own complications.
Market Rates – Blessing and a Curse
INZ is tasked with using various sources to compare an applicant’s proposed salary to the market rate for that role. However, these sources are often limited, don’t always take into account regional variations or the specific nature of the business involved and we are already seeing a number of applications for Job Checks being contested over whether the rate is indeed within the market range.
INZ currently refers to only a handful of specific sources to guide them on market rates, and some of these are questionable. They can of course take other sources into account; however it is on a case by case basis and typically officers defer to whatever is put in front of them.
Our advice to any and all employers engaging in the Job Check process, under this current set of criteria is to tread carefully. Understand what the market is paying for your role, speak to your recruitment specialist and make sure you are considering all the sources available to guide that salary range. Never assume that INZ will take your word for what a fair market rate might be, particularly if your business is based outside of one of the main centres (regional variations can be more complex).
I predict that, in time, the assessment of market rates will settle down somewhat with INZ taking a more balanced and sensible approach but in the meantime, employers need to do a little extra homework to ensure their proposed remuneration is going to meet INZ’s market rate assessment.
For assistance with your immigration issues, contact the team at Turner Hopkins Immigration Specialists or email them: immigration@turnerhopkins.co.nz
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At Turner Hopkins, our team is at the heart of everything we do. With decades of experience across a wide range of legal services - including property, business, family law, immigration, litigation, and estate planning - we are committed to delivering expert advice with a personal touch.
Our lawyers, legal executives, and support staff work together to provide practical solutions and outstanding service to our clients. While you'll see many of our key team members featured here, we also have a dedicated group of legal executives, administrators, and support staff who play a vital role in ensuring we deliver the highest standards of service.
Whether you're navigating a complex legal matter or seeking straightforward advice, you can trust our experienced and approachable team to guide you every step of the way.
Need Help - Get In Touch
As we hop into April, we’d like to take a moment to thank you for your continued support. Whether you're cracking into a new business venture, settling into a new property, or simply planning ahead, our team is always here to help—no egg-scuses needed!
From all of us at Turner Hopkins, we wish you a joyful, relaxing and safe Easter break. May your weekend be filled with good company, sweet treats, and maybe even a surprise or two!
Until next month!
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