Workers set to get right to challenge their dismissal in overhaul of 90 day trial law

The controversial law allowing a 90 day trial period for employees is in for a major overhaul.

The new Minister for Workplace Relations, Iain Lees-Galloway, has told 1 NEWS he wants to give workers sacked under the law a chance to fight back.

But it may deter employers from hiring altogether.

There was plenty of pushback against the National government's 90 day employment trial as workers protested, but nine years on they have finally had a breakthrough.

"Labour governments always look to be governments that uphold working people's rights," Mr Lees-Galloway said.

The new Minister wants employers to retain the right to dismiss an employee within their first 90 days if they're not performing.

But employers will now have to explain why, and if the worker is not satisfied then they can challenge it.

"I'd liken it to a small claims court within the mediation service, and it'll be no lawyers," Mr Lees-Galloway said.

The worker could be reinstated and awarded compensation up to $5000, and employers will have no right to appeal the decision.

Employment lawyer Blair Scotland predicts "a lot of employees will not want to use trial periods because they won't want to find themselves in a position where they have no appeal rights against the decision of this referee".

Tens of thousands of people have been sacked under the 90 day rule. 

Mr Scotland says employers could end up paying more under the changes, and being stuck with someone they don't want.

"It's a really interesting one because it kind of goes against the thought of a trial period. The idea of a trial period was designed to give employers the ability to to try people in a risk-free basis," he said.

But the unions see it differently.

"They intend to modify it so that there will be an opportunity for working people to get some kind of dialogue going about what's working and what's not. And hopefully that will encourage better behaviour," said Richard Wagstaff of the Council of Trade Unions.

Mr Lees-Galloway said what the Government is doing "is codifying good employment practices, and the vast majority of employers will find no change to their practice."