TIPS FOR EMPLOYERS USING 90 DAY TRIAL PERIODS
As promised, the National-led Government has implemented a 90-day trial provision for all businesses, regardless of employee numbers. This new amendment came into force on 23 December 2023, removing the ‘small-to-medium business’ cap instituted by the previous Government.
90-day trial provisions give employers an avenue to dismiss employees within their first 90 days of employment, and removes an employee’s right to raise a personal grievance for that dismissal.
If you are interested in adding a 90-day trial provision to your employment agreements, there are a few critical things you must know:
- The provision can only be put into agreements for new incoming employees.
- You cannot add a trial provision to an existing employee’s agreement, nor can you add one to a returning employee’s agreement.
- The employment agreement must be signed before (not on) the employee’s first day of work. If not, the trial provision is invalid.
- You have to abide by the notice period set out in the provision – you cannot dismiss an employee without notice under this provision.
- Employees can still pursue remedies for other issues such as discrimination or unjustified disadvantage. 90-day trials are not a ‘get out jail free’ card.
If you would like to include 90-day trial provisions in your employment agreements, our specialist employment team is happy to assist. We can assist with wording for your agreements and further advice about how to use the 90 day trial provision properly, from offer stage through to dismissals.
The New Year is also a good time to review your employment agreement templates generally and ensure they are up to date. We can assist with a full review of your agreement(s) to ensure your templates reduce the risk for your business and are compliant with current employment law.
How can we help?
WRMK Lawyers has Northland’s largest team of employment law specialists. We help our clients with all their employment processes. If you need help or guidance setting up or utilising a 90 day trial period, please give one of us a call or contact your usual WRMK lawyer for advice.
Our thanks to Law Clerk Georgia Blockley for writing this article.
WRMK Lawyers takes all reasonable care to make sure that the information in this article is up-to-date and accurate at today’s date. It is necessarily general information and not intended as legal advice to be relied upon.
Every effort has been made to ensure accuracy in this article. However, the items are necessarily generalised and readers are urged to seek specific advice on particular matters and not rely solely on this text.
Get in touch with your question now
RELATED PEOPLE
