90 Day Trial Period

From 1 March 2009, employers who employ 19 and fewer employees will be able to employ new employees on a trial period of up to 90 calendar days.

What is a trial period?

As part of an employment agreement, an employer and employee can enter into a written agreement that, for the specified and agreed number of days but no more than 90 calendar days, the employer can dismiss the employee without the employee being able to take a personal grievance for reasons of unjustified dismissal.

If I am an employer, will I be able to offer a trial period to new employees?

From 1 March 2009 employers who employ 19 and fewer employees will be able to offer trial periods to new employees. Any trial period that you agree to with a new employee must be agreed to in good faith (as provided for in the Employment Relations Act 2000) as part of their written employment agreement.

Other requirements

The written employment agreement should be signed by both you and your employee at the beginning of your employment relationship. A signed employment agreement may reduce the risks of legal challenge.

• You and the employee must both bargain in a fair way.
• Notice must be given within the trial period, even if the actual dismissal doesn't become effective until after the trial period ends.
• An employer and employee may agree to a trial period only if the employee has not previously been employed by the employer.
• Protections regarding pay, conditions, leave, and health and safety are unaffected by employment in a trial period.
• Remedies are available for personal grievances other than those based on unjustified dismissal. For example, if employers act in a discriminatory manner or in the case of sexual or racial harassment, employees will be able to take a personal grievance under the Employment Relations Act through the Employment Relations Authority or Employment Court.
  

For building an agreement refer to the Department of Labour
Employment Relations www.ers.dol.govt.nz