Labour is coming under pressure to make further changes to 90-day trials for workers having already backed down on its pledge to completely axe the trial periods.
MPs hearing submissions on the proposed employment law changes this week will hear a plea for more businesses to retain the trials.
The trials are to remain at workplaces that employ fewer than 20 workers.
The Employers and Manufacturers Association is among those asking the Government to allow those who employ up to 100 workers to use 90- day trials.
Hospitality bosses say there'll be fewer staff at their establishments if the Government's law changes go ahead.
Wellington bar owner Jeremy Smith says his costs will probably increase by about seven per cent and that means he'll have to re-look at how many staff are employed and how many hours they work.
Minimum wage increases and a strengthening of collective bargaining are among the changes.
“It feels like you have no rights
Hospitality New Zealand chief executive Vicki Lee says the sector is already facing staff shortages, especially, but not only, in the regions, "and this will make it far worse".
Unions are mostly happy with the changes, but are unhappy the 90-day law is here to stay for those who employ fewer than 20 workers.
"It doesn't make sense to us that small businesses have a lower threshold when it comes to expectations around standards," said Richard Wagstaff, Council of Trade Unions president.
Wellington care worker Jessica Legg was fired under a 90-day trial after calling in sick one day.
"My boss said that he knew from the moment he saw me that I had mental health problems," she said.
She was told she didn't have a paid job anymore - but was offered volunteer work.
"The fact I was on a 90-day trial just made me feel that my employer could walk all over me. And that's exactly what he did," Ms Legg said.
Retaining the 90-day trials in a limited form has seen a mixed response from employers.
"The 90-day trial gives me the opportunity to say, 'I like you, I think you've got potential, let's work together and see how it goes'," Mr Smith said.
It's understood Labour kept the 90-day trial period as part of its agreement with New Zealand First.
"More than 10,500 people lose their jobs within 90 days under that legislation. We don't think it's a good experience for most people ," Mr Wagstaff said.
Ms Legg said: "It feels like you have no rights."
MPs are now hearing submissions from the public on the proposed changes.
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