Defeat of the 90-Day Bill
A bill that would have established a 90-day probation period for new
employees was recently defeated in Parliament. The controversial
bill passed its first reading in March this year, and a select committee
heard many public submissions on it. It was voted down 67-53
on its second reading. Labour, New Zealand First, the Greens,
the Maori Party and the Progressive Party opposed it. In favour
were National, United Future and Act.
We recommend that employers continue to include probationary (trial)
periods in their employment agreements as new employees will then be
aware that their performance will be under greater scrutiny at the
commencement of the employment relationship. In the meantime,
however, it is important to ensure that:
- You recruit the right person for the job. Don't rush this
important process; and
- You ensure that employees on probation
are treated as if they are permanent employees. You cannot
lawfully dismiss these employees unless you carry out the dismissal
in a procedurally fair manner and have good reason to do so (viewed
objectively, not by your standards).
For more information, please contact:
Erin Davies
Partner
t: +64 9 979 2177
m: +64 29 622 2300
e: Erin Davies
Last updated: 6 December 2006
This article is intended to be brief in nature and should be used for information only. It should not be relied on as legal advice. |
