Government passes legislation bringing back 90-day trials for all employers

The 90-day trials were initially brought in by the previous National-led government, allowing workers to be dismissed within 90 days of starting work, with no need for the employer to provide a reason.
The 90-day trials were initially brought in by the previous National-led government, allowing workers to be dismissed within 90 days of starting work, with no need for the employer to provide a reason. Photo credit: RNZ / Samuel Rillstone

By RNZ

The government has passed legislation bringing back 90-day trials for all employers.

National and ACT both campaigned on bringing the trials back for all employers, and the move was included in their coalition agreement - with a promise to introduce the legislation included in the 100-day plan.

The government said bringing the trials back would make a huge difference to the labour market and encourage businesses to hire people they otherwise might not, while the opposition argued it would take workers' rights away.

While the government initially proposed sending the legislation to a select committee before Christmas, Workplace Relations and Safety Minister Brooke van Velden later confirmed it would instead be passed through all stages under urgency.

The 90-day trials were initially brought in by the previous National-led government, allowing workers to be dismissed within 90 days of starting work, with no need for the employer to provide a reason.

Labour had in 2017 campaigned on abolishing the law, but in coalition with New Zealand First merely limited the scheme to businesses with 19 or fewer employees.

Research from Motu in 2016, commissioned by Treasury, found "no evidence that the ability to use trial periods significantly increases firms' overall hiring", and "no evidence that the policy increased the probability that a new hire by a firm was a disadvantaged jobseeker".

It also did not appear to affect the likelihood of new hires remaining in the long term, or make workers less likely to move jobs. The researchers did find a weak increase in hiring in the construction and wholesale trade industries, however.

The bill passed with the support of all three governing parties, and was opposed by all three opposition parties.

RNZ