A trial period clause allows an employer to dismiss an employee during the initial period of their employment (up to 90 days) and the dismissed employee is not entitled to bring a personal grievance or other legal proceedings in respect of the dismissal. In a change that took effect on 23 December 2023, all employers in New Zealand, no matter how many employees they have, can now include a trial period clause in any new employment agreement entered into with a new employee. Previously only employers with fewer than 20 employees could include such clauses. To be enforceable, however, the legal position remains that the trial period must be in a written agreement entered into before the employee starts work and with an employee not previously employed by that employer. Please contact us for further information.
(Posted 4 March 2024)