National MP Wayne Mapp's bill that would have established a 90-day probation period for new employees has been defeated in Parliament.
The controversial bill passed its first reading in March this year, and a select committee heard many public submissions on it.
Unions strongly opposed it and staged
public demonstrations, while employer organisations wanted it to become law.
It was voted down 67-53 on its second reading last night. Labour, New Zealand First, the Greens, the Maori Party and the Progressive Party opposed it. In favour were National, United Future and Act.
Mr Mapp and other supporters argued that it would help young people get jobs because employers would be willing to give them a chance if costly personal grievance procedures did not apply.
They said young people who did not have qualifications, and immigrants without good English, were disadvantaged because employers were afraid it would be difficult to sack them if they were found to be unsuitable.
Opponents said it was unfair, unnecessary, bad for employers and bad for employees. Unions described it as "a naked attack on workers' rights".
- NZPA
