Employment lawyers are warning people to be careful about taking jobs in small companies because of the provisions in the 90-day probation bill passed by Parliament yesterday.
The law gives businesses with fewer than 20 workers the right to sack a new employee during the probation period without
explanation and without risking a personal grievance case.
The Labour Party and trade unions say it strips rights from workers who will be open to abuse and discrimination without the protection of current employment laws.
Within hours of the bill being voted into law, a group of employment lawyers issued a statement saying anyone who could not afford to lose his or her job should not accept one with a small company, especially if already in secure jobs.
Helen White, Simon Mitchell and Greg Lloyd said they had extensive experience in representing employees.
"The new act exposes everyone who starts a new job in a company where there are fewer than 20 employees to the risk of being sacked without even being told the reason, let alone any ability to do anything about it," they said.
"These are the type of people whom we frequently represent, and our experience in this area leads us to the conclusion that this new law will have serious consequences for them."
They gave this example to explain what they meant: A hairdresser is so good at her job that she attracts customers from a nearby competitor. The rival salon poaches the hairdresser, offering her more money. Two weeks later the hairdresser is sacked. The new employer's real intention was to damage the rival's business.
The lawyers said the situation would be worse if the worker had signed a restraint-of-trade clause preventing her from working for another salon in the area.
The Government put a provision in the bill which, it said, would prevent discrimination, but the lawyers said it would not work.
"If you are not told why you've been dismissed, how can you challenge it as discrimination?" they asked.
The lawyers urged Parliament to review the 90-day probation law, and urged anyone considering taking a job in a small business to consult a union before signing up.
They said no one should sign a restraint-of-trade clause which applied during the 90 days.
- NZPA
