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Legislation Repeals Update

The Government has passed legislation bringing back 90-day trials for all employers.

The bill was the same as the 2011 one. 

 What does this mean for employers?

  • Employers will be able to dismiss employees under a 90-day trial period, where the employment agreement has a valid trial period provision. 

  • Section 67A(2) sets out the legislative requirements which must be met for a valid dismissal under a trial period. If a dismissal is valid, an employee will not be entitled to bring a personal grievance against the employer.

  • The trial provision must be in writing, and for a specified period not exceeding 90 days, starting at the beginning of the employment relationship.

  • Trial periods can only be entered into if the employee has not been previously employed by the employer. 

  • An employer cannot introduce a trial-period for an existing employee. 

Read the Beehive Press Release here, and of course, we can help if you have particular questions relating to your business or organisation.

The Fair Pay Agreements (FPA) legislation has been repealed with effect from 20 December 2023

With no fair pay agreements actually finalised the repeal of this legislation is largely about taking the option/requirement ‘off the table’ for many sectors.  No new applications can be considered and Employment New Zealand provides advice on what bargaining options remain available as well as laying out the privacy obligations here.