By Andrew Steele - 6 Apr 2009
New legislation means that employees can be required to prove
their worth over ninety days - or be dismissed without explanation.
This may reassure employers who have previously been apprehensive
about taking on new staff, as a disappointing candidate was
difficult to 'let go'.
From 1 March 2009, new employees of small to medium sized
businesses may be placed on a ninety day trial period. If the
employer wishes to dismiss the employee during this period, it may
do so. The employer does not have to give any reason or
explanation. The employee is barred from bringing a personal
grievance for unjustified dismissal.
Three restrictions on using the new 'trial period'
- The trial period cannot be applied to employees who the
employer has previously employed
- The trial period applies only to employers who employ 20 or
less employees.
-
The trial period must be written into the employee's individual
employment agreement.
How does the new trial period differ from previous law?
The Employment Relations Act 2000 already allows employers to
agree a 'probationary period' with new employees.
However, the employer still cannot dismiss the employee unless
it has:
Seek advice for your situation
If you are an employer, you may need help to draft a 'trial
period' clause. Or you may wish to have your standard employment
agreements legally 'health checked'.
As an employee, you may wish to discuss how the law change
affects you now or in future positions.
For help with any employment matter, please contact our
employment
team.