Trial Periods in New Zealand

Since 2023, businesses of all sizes have been able to set “trial periods” for new employees of up to 90 days. The goal was to “encourage… businesses to give a new employee a go and to take on new employees”. During a trial period, an employee can be dismissed by being given the notice specified in their employment agreement. If everything is done correctly by the employer, there is no right to raise a personal grievance for unjustifiable dismissal.

However, there are a lot of things that can go wrong with a trial period.

Only new employees can be given a trial period.

There has to be a written “trial provision” in the employment agreement that states how long the trial period will be. There has to be a clear statement that the employer may dismiss the employee during the trial period; and there has to be a clear statement that the employee cannot bring a personal grievance or other legal action against the employer with respect to the dismissal (Employment Relations Act 2000 s 67(A)(2).

Because a trial period removes many of the normal rights an employee has, there is a duty on the employer to be very careful when dismissing someone. If you are dismissed during a trial period, you should discuss your situation with me, or another employment professional.