By Claire Mansell - 17 Feb 2012
A recent Employment Court decision has given further direction
about employers' obligations when implementing 90 day trial
periods.
In Blackmore v Honick Properties Limited, the
applicant, Mr Blackmore, applied for a position as a farm
manager. After the initial interview, the employer sent Mr
Blackmore a letter offering him the position, which he accepted. Mr
Blackmore then resigned his current position and relocated his
family so he could start his new role.
On his first day of work, Mr Blackmore's employer presented
him with an employment agreement which contained a 90 day trial
period clause. Mr Blackmore was asked to sign the
employment agreement then and there. Mr Blackmore signed the
agreement as he believed that he had no other choice.
Mr Blackmore was later dismissed within the 90 day trial
period. He brought a personnel grievance on the basis that he
was treated unfairly by being asked to sign the employment
agreement without having the opportunity to obtain legal
advice.
The Employment Court found that when Mr Blackmore accepted the
offer of employment, he became an employee under the Employment
Relations Act 2000. Because Mr Blackmore was already an employee
when he signed the employment agreement on his first day of work,
the 90 day trial period could not be enforced.
The Court found that the employer also breached his obligations
by not allowing Mr Blackmore time to obtain legal advice
regarding the employment agreement.
We suggest that when hiring new employees, employers should:
-
Provide a complete employment agreement to the prospective
employee with the first offer of employment;
-
Allow the prospective employee a few days to obtain independent
legal advice regarding the employment contract.
If you would like to speak to us further about trial periods
please contact Claire Mansell.