The government had announced the introduction of this change by 25 December.

According to the Bill, amendments to the Employment Relations Act 2000, any employer, no matter the size, can provide a new employee with an offer of employment, which includes a trial period. 

Previously, 90-day trial periods only applied to employers with fewer than 20 employees.

The trial period must be agreed upon in writing and in good faith (an employee cannot  be forced into being employed on a trial period) in the employment contract before the employee starts work.

Employees cannot  be on a trial period if they’ve worked for that employer before.

However, if an employee is a trade union member and works under a collective bargaining agreement, they cannot have a probationary period (under their terms and conditions) that conflicts with the collective bargaining agreement.

This measure existed previously,  and Business New Zealand strongly advocated for its return. In the document summarising the needs of companies, the reinstatement of the 90-day probationary period for all new employees of companies of all sizes was expressly stated.

The amendment should provide certainty for companies, which now can include this clause in employment contracts.

“Extending 90-day trial periods to all employers gives businesses the confidence to hire new people and increases workplace flexibility,” said Minister van Velden.