Probation Periods in New Zealand
Many employment agreements contain a probationary period. This is not the same as a trial period. The purpose of a probation period is to allow the employer to determine if a person is suitable for a particular job and to allow time for any problems, such as missing skills or unsuitable practices, to be set right.
The existence and details of a probation period should be written in the employment agreement (Employment Relations Act 2000 s 67(1)(a)). If the probation period is not stated in writing in the employment agreement, any other probationary period arrangement can be ignored by the employee (Employment Relations Act 2000 s 67(3)).
During a probation period, the employer must be open and constructive about areas of the employees performance that are unsatisfactory, and provide training and guidance to help the employee achieve the required standard. Sometimes, that means the employment will not continue beyond the probation period.
Even if an employer has decided the employee is not suitable, the employee should usually be able to work until the end of the probation period (Schofield, 2024). The employer cannot dismiss an employee at the end of a probation period unless they have told the employee that their performance is not satisfactory and that they need to improve their performance or they would be dismissed.
An employee cannot be justifiably dismissed at the end of a trial period unless they have been given “reasonable notice” that their employment will be terminated at the end of the probation period. If an employee hasn’t been told they will be dismissed at the end of the probation period, their employment continues.
If you have been laid off during a probation period, or your probation period has been extended, contact me.
References
Schofield, S. (2024). New Zealand Employment Law Guide. CCH New Zealand Limited.
