{"id":1828,"date":"2020-12-23T00:06:09","date_gmt":"2020-12-22T14:06:09","guid":{"rendered":"https:\/\/nz.legalvision.com.au\/?p=1828"},"modified":"2024-02-27T11:27:41","modified_gmt":"2024-02-26T22:27:41","slug":"what-is-the-90-day-trial-period-in-nz","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/employment\/what-is-the-90-day-trial-period-in-nz\/","title":{"rendered":"What is the 90-Day Trial Period?"},"content":{"rendered":"\n<p>As an employer, you can use a trial period to determine if a new employee is suitable for the job. Since 23 December 2023, all employers are eligible to use a 90-day trial period provided they meet all other requirements for using a 90-day trial. Before this, the 90-day trial period was only available to small business owners employing 19 employees or fewer.<\/p>\n\n\n\n<p>However, there are specific eligibility criteria you must first meet. You must agree to the trial period in writing before your new employee starts working and give him appropriate notice of dismissal if things do not work out. It is crucial to understand your legal obligations when you use a probationary period to avoid receiving a personal grievance or other legal proceedings from your employee. This article will explain how to use the 90-day trial period under New Zealand employment law.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">What is the 90-Day Trial Period?<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">The 90-day trial period for new hires is a defined period during which a new employee receives training to learn a new job and demonstrates whether they are suitable for it.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">You can use the 90-day trial period in any industry and for any job, as long as you:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">employ less than 19 employees; and&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">agree to the trial period in writing before your employee starts work.<\/span><\/li>\n<\/ul>\n\n\n\n<p>You may also opt for a shorter trial period if you wish to do so, but it cannot be longer than 90 days. Other common trial periods are 30 or 60 day trials.<\/p>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2021\/12\/16124322\/performance-improvement-plan-wp-1.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\"> Performance Improvement Plan<\/div>\n            <div class=\"body-text\">\n                <p>When your employee does not perform at the expected level, a performance improvement plan (PIP) may be required to get them back on track. Our free PIP template will assist. <\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.nz\/performance-improvement-plan-NZ.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Your Employer Obligations<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">As an employer, you have certain legal obligations when you use the 90 day trial period to avoid receiving a personal grievance or other legal proceedings from your employee. These include:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">using the trial period only once with the same employee;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">agreeing to it in the employment agreement (in good faith) before your employee starts work;&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">stating the exact period of the trial (a maximum of 90 calendar days);<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">including a valid notice period in your employment contract;&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">respecting your employees&#8217; rights and responsibilities to <a href=\"https:\/\/legalvision.co.nz\/employment\/how-to-ensure-your-new-zealand-workplace-is-safe\" target=\"_blank\" rel=\"noreferrer noopener\">health and safety<\/a>, <a href=\"https:\/\/legalvision.co.nz\/employment\/minimum-wage-new-zealand\" target=\"_blank\" rel=\"noreferrer noopener\">minimum pay<\/a>, <a href=\"https:\/\/legalvision.co.nz\/employment\/annual-parental-leave\" target=\"_blank\" rel=\"noreferrer noopener\">annual holidays<\/a>, public holidays, <a href=\"https:\/\/legalvision.co.nz\/employment\/sick-leave-employees-new-zealand\" target=\"_blank\" rel=\"noreferrer noopener\">sick<\/a> and <a href=\"https:\/\/legalvision.co.nz\/employment\/what-is-bereavement-leave-in-new-zealand\" target=\"_blank\" rel=\"noreferrer noopener\">bereavement leave<\/a> and equal pay; and<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">if your employee is a union member, respect<\/span>ing<span style=\"font-weight: 400\"> the trial period terms and conditions of their collective employment agreement.<\/span><\/li>\n<\/ul>\n\n\n\n\n\n<p>You should also ensure that if you hire a migrant worker, the 90-day trial provision is permissible under their visa conditions. There are different conditions for different visas permitting the use of trial periods. For example, suppose you hire a worker under an Accredited Employer Work Visa scheme. In that case, you cannot utilise a 90-day trial period.<\/p>\n\n\n\n<p>You can write a trial period provision for your employment agreement using the <a href=\"https:\/\/www.employment.govt.nz\/starting-employment\/employment-agreements\/employment-agreement-builder\/\">Employment New Zealand\u2019s Agreement Builder<\/a>. However, if you are unsure, it is a good idea to get your employment agreement reviewed by a lawyer to avoid receiving a personal grievance for unjustified dismissal.&nbsp;<\/p>\n\n\n\n<p>For example, suppose your new employee signs their employment agreement the day after they start working. Here, the trial period will be invalid because they did not sign the agreement before beginning work. In this case, you cannot dismiss your employee under the trial provision as you did not obtain the employee\u2019s agreement, allow them to obtain independent advice and raise any issues before signing their employment agreement.<\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    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However, you must provide the notice set out in their employment agreement. In dismissing an employee on a trial period, the employer does not need to give reasons for their dismissal. However, you should do so under good faith obligations if they ask you. You do not have to write your reasons, but you must at least tell them your reasons verbally.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Giving Notice<\/h2>\n\n\n\n<p>Before giving notice, ensure the trial period is valid and the employee is still working within the first 90 days. When giving notice of dismissal, you must follow the terms you agreed to in the employment agreement. Otherwise, the trial period becomes invalid, and you cannot dismiss them as easily. If you choose to terminate the employee regardless of this situation, there is a risk that the employee could raise a personal grievance.<\/p>\n\n\n\n<p>The notice you give needs to be clear and unambiguous. It must explain to the employee how and when their employment ends.<\/p>\n\n\n\n<p>After giving valid notice, you can let the employee work out their notice period or, if the employment agreement permits, pay them in lieu of notice. Alternatively, you can send them home on \u201cgarden leave\u201d, where they remain your employee for the notice period but do not need to work it out.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Under New Zealand employment law, you can use a probationary period of a maximum of 90 days to determine if a new employee is suitable for the role you are seeking to fill. To qualify, your business must employ less than nineteen employees. You must meet specific requirements for the trial period provision to be valid, including:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">agreeing to the trial period in writing and good faith before your employee starts work;&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">including the exact period of the trial (a maximum of 90 calendar days) and a valid notice period in the employment contract;&nbsp;&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">giving your employee adequate notice and a reason for dismissal (best practice); and&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">respecting your employees&#8217; rights and responsibilities such as health and safety, minimum pay, annual holidays, public holidays, sick and bereavement leave and equal pay.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">If you need help understanding your employer obligations or you need to discuss a trial period provision in your employment agreements,<\/span> our experienced <a href=\"https:\/\/legalvision.co.nz\/employment-lawyers-lp\">employment lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+64800005570\" class=\"AVANSERnumber dynamic-number\">0800 005 570<\/a> or visit our <a href=\"\/membership\">membership page<\/a>.<\/p>\n\n\n\n\n","protected":false},"excerpt":{"rendered":"<p>As an employer, you can use a trial period to determine if a new employee is suitable for the job. Since 23 December 2023, all employers are eligible to use a 90-day trial period provided they meet all other requirements for using a 90-day trial. Before this, the 90-day trial period was only available to<a href=\"https:\/\/legalvision.co.nz\/employment\/what-is-the-90-day-trial-period-in-nz\/\">Continue reading <span class=\"sr-only\">&#8220;What is the 90-Day Trial Period?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13387,"featured_media":126,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"205248,204935,223838,201905,213727,207846","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[5],"tags":[24,25,54,108,341],"class_list":["post-1828","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","tag-startup","tag-small-business","tag-medium-business","tag-employment-agreements","tag-90-day-trial-period"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is the 90-Day Trial Period? | LegalVision NZ<\/title>\n<meta name=\"description\" content=\"Do you employ staff in New Zealand? 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