Employment law changes: The ins and outs of 90-day trials

Ninety-day trials are back but employers need to know the rules. Photo / 123rf

OPINION

A demanding year has come to an end and an interesting new one has just begun.

In my field of employment relations we have a couple of changes that have just come into force that you may have missed.

Ninety-day trial periods for new employees, previously only for use by small companies of 19 employees or fewer, has been extended for all companies to use.

I’m not sure how I feel about that - large employers shouldn’t need them and they can result in slack recruiting practices. Oh well, employees who have already got a job won’t be affected.

Trial periods are only for new employees who have never worked for the employer before, even on a part-time or casual basis.

The employment agreement must be signed before the employee starts work. The duration is exactly 90 days, not three months, and this is an important difference.

The 90-day trial period must be clearly stated in the employment agreement and the employer must give notice to the employee before the 90 days is up.

I encourage my employer clients to make a diary entry two weeks before the 90 days is up, and make a decision.

A wee celebration to mark the successful end of the period is a good motivator too.

I’m still having to help small businesses who don’t understand the very strict rules about how trial periods must be used, and who consequently get into trouble - often very expensive trouble - and always stressful.

Fair pay agreements

Labour’s Fair Pay Agreements never got off the ground and now they won’t, which will be a huge relief to small businesses who can’t afford big company pay rates. New Zealand is built on small businesses.

Employers need to recruit right, treat staff well, train for and reward good performance.

Employees need to respect the risks the employer takes in running a business and provide a decent day’s work for a decent day’s pay.

Honesty and integrity apply equally to both parties. May your employment relationship be mutually respectful and productive,

My very best wishes for 2024,

• Steve Punter is a Taupō-based employment adviser and mediator.

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