The 90-day trial period is a common employment practice in New Zealand, which allows employers to assess the suitability of new employees. During this period, the employer may terminate the employment without the risk of a personal grievance claim for unjustified dismissal. However, it is essential for employers to understand the legal requirements for a valid 90-day trial period and the process for termination.
Firstly, it is important to note that a valid trial period must be included in the employment agreement, and the employee must have signed it before starting work. The trial period must also be reasonable and proportionate to the nature and requirements of the role. Employers with 19 or fewer employees can hire new employees on a trial period for up to the first 90 calendar days of their employment. However, an employee cannot be on a trial period if they have worked for that employer before.
During the trial period, the employer must ensure that the employee receives appropriate training, supervision, and support to perform their duties. The employer must also provide regular feedback to the employee on their performance and any areas for improvement. This will help to ensure that the employee has a fair opportunity to demonstrate their skills and suitability for the role.
If the employer decides to terminate the employment during the trial period, they must follow a fair and reasonable process. This includes providing the employee with notice of termination. The employer must also act in good faith and avoid any form of discrimination or harassment.
It is important to note that the termination of employment during the trial period cannot be challenged by the employee as unjustified dismissal. However, the employee may still have the right to challenge the termination on other grounds, such as discrimination or a breach of their employment rights.
In conclusion, the 90-day trial period is a useful tool for employers to assess the suitability of new employees. However, it is essential to ensure that the trial period is valid, and the termination process is fair and reasonable.
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