Focus on SMEs: Work trial periods must be agreed by both sides

A trial period agreement must be agreed to and signed before an employee starts work. Photo / Thinkstock

PROBLEM

I have a small business with seven employees and have employed two new staff members. A person who has previously been employed by the company started last week and the other is starting in a week's time. Can I use the trial period provisions under the Employment Relations Act?

SOLUTION

BDO Waikato Human Resources Services expert Linda Paulson says using a trial period for new employees provides flexibility for the employer to address a situation in which the working relationship isn't functioning as expected. It allows for reviews through the trial period so the employer and the employee can address any issues and work to correct them. In the case of invoking the trial period to dismiss an employee, it protects the employer from receiving a personal grievance for unfair dismissal.

A trial period is by agreement and, to be enforceable, must be agreed to and signed before an employee starts work.

Employers need to be firm about this and not allow a new employee to start work before it is signed by both parties.

If they start before it was agreed to, the trial period would be invalid.

The allowance of seven days for a potential employee to review the contents of the agreement is best given and allowed for before they start work.

In your situation, the employee who has been employed by you is not eligible to be covered by a trial period.

In the case of the employee starting next week, I suggest that you prepare an employment agreement, include a trial period, and provide them with a reasonable amount of time to review the contents.

Make sure the agreement is signed by both parties before anyone starts work.

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