The Government has passed legislation bringing back 90-day trials for all employers. The bill was the same as the 2011 one.
What does this mean for employers?
Employers will be able to dismiss employees under a 90-day trial period, where the employment agreement has a valid trial period provision.
Section 67A(2) sets out the legislative requirements which must be met for a valid dismissal under a trial period. If a dismissal is valid, an employee will not be entitled to bring a personal grievance against the employer for unjustified dismissal.
The trial provision must be in writing, and for a specified period not exceeding 90 days, starting at the beginning of the employment relationship.
Trial periods can only be entered into if the employee has not been previously employed by the employer and an employer cannot introduce a trial-period for an existing employee.
For a guide on how to effectively and lawfully implement a 90-day trial into your hiring process, have a look at our 90-day trial guide. You must be a member of HRNZ to access this resource. This guide sets out the differences between a 90-day trial period and a probation period, and the different legal obligations an employer must fulfil when implementing each period.
View the full guide | 90-Day Trial Periods vs Probation Periods
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