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Useful Information 

New ’90 day trial’ for employees.

An employer of fewer than 19 staff and a prospective employee can now come to an agreement regarding the new employment '90 Day Probationary Period'. This means that a voluntary, written, mutually agreed upon contract can be entered into between an employee and employer for a trial period of not more than 90 calendar days.  

New Zealand is almost the only country in the OECD that did not previously have a probationary period for prospective new employees. This is an effort by Government to generate opportunities for people who might not otherwise be given a chance to get on the employment 'ladder’. There are certain conditions that are standard across all agreements, for example, the 'trial' employee cannot raise a personal grievance on grounds of unjustified dismissal. However, all other standard rights as an employee stand and the employee can raise a personal grievance on other grounds such as harassment, discrimination or unjustified action by the employer.

We suggest keeping up to speed with changes over the near future if you are planning to change jobs, or if you are an employer planning to recruit. As an employer you will need to keep up to speed with the latest developments and remain compliant with new legislation as it is introduced. It can be argued that these developments have increased importance as we enter a period where there is a risk of greater unemployment. 

In any case – we are only too pleased to assist with your employment queries and can help you navigate through new considerations in your employment contracts.

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