Legislation to fully reinstate 90-day trials passes

December 21, 2023
Workplace Relations and Safety Minister Brooke van Velden.

Legislation allowing the full reinstatement of 90-day trials for all employers has been passed in Parliament.

The reinstatement of the trials was something both National and ACT campaigned on, with it being in their coalition agreement and part of the Government's 100-day plan.

Today, the Employment Relations (Trial Periods) Amendment Bill was passed.

"Around 72 per cent of all employees in New Zealand are employed by businesses with 20 or more workers," Workplace Relations and Safety Minister Brooke van Velden said.

"We've heard loud and clear from these businesses; they want 90-day trials back.

"By giving all businesses, not just those with fewer than 20 staff, the confidence to take a chance on a new employee without the risk of a costly dismissal process we enable more New Zealanders to find fulfilling work."

The trials were originally introduced by the previous National-led government and allowed workers to be dismissed in that time period without a reason.

Under the Labour-NZ First coalition, if was amended to include only businesses with 19 or fewer employees.

A Treasury-commissioned study in 2016 found 90-day trials did not help jobseekers and did not boost employment numbers.

Earlier this month the Government repealed fair pay agreements.

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