northland chamber

Small to Medium Sized Businesses now have option of 90-day trial

From 1 March employers in small to medium sized businesses will have the option of taking on new staff on a trial period for up to 90 days. This will allow employers to test a new employee’s suitability for permanent employment, without the risk of legal proceedings for unjustified dismissal if employment is terminated.

Employers that employ 19 or fewer workers can use the new trial provisions. You may employee part time, full time and casual workers as long as the total number not does exceed 19 workers.

Only new workers can be put on a trial period. If a worker has previously worked for you, they can’t be put on a trial period. For example, a worker who has worked for you for 6 months in 2006 and then applies for a position with you in 2009 can’t be put on a trial period.

When a worker agrees to a trial period it must be recorded in writing in the employment agreement. A trial period that is not recorded in writing is invalid.

The trial provision in the employment agreement needs to cover;

• that the worker is serving a trial period for a specified time starting at the beginning of the worker’s employment (no longer than 90 days); and
• that the employer may dismiss the worker during the trial period; and
• if the worker is dismissed he or she cannot bring a personal grievance or other legal proceedings in respect of the dismissal

If a worker is unsuccessful during the trial period and employment is terminated, you are under no obligation to provide a reason for the dismissal. Nor will the dismissed worker be able take a personal grievance for unjustified dismissal; however, a personal grievance may be taken if issues of discrimination such as racial or sexual harassment arise.

A worker cannot raise a personal grievance for unjustified dismissal if he/she is dismissed during the trial period. This rule applies even if the notice of the dismissal is given before the end of the trial period and the worker’s last day of work is after the end of the trial period.

Employers must abide by the notice provisions in the employment agreement.
If the employment agreement does not have a notice period, you must give reasonable notice of the dismissal.

For further information go to www.dol.govt.nz

The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 21,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz
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