By Andrew Steele - 6 Dec 2018
Since 2009 all employers have been free to agree 90 day
trial periods for new employees. This allowed those employers to
'try and see' a new employee and, if things did not work, they
could dismiss them. The trial period clause precluded the employee
from bringing a personal grievance in respect of the
dismissal.
Labour signalled early on that although they would not do away
with this 'employer right/power', they wished to bar its use by
large employers. It was argued that large employers ought to be
better resourced to make the right choices when engaging employees
and to address employee problems in the traditional way, rather
peremptorily dismissing them.
The restriction on which employers may insert 90 day trial
periods has been legislated for and will come into effect on 6 May
2019. From this date forward only small-to-medium-sized employers
may use such clauses, that is, employers who employ fewer than 20
employees as at the date the new employment agreement is entered
into.
Contact
Employment team