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Employees in New Zealand must complete a probation period when they begin employment. During their probationary periods, employees are not entitled to the same rights and benefits that an employee who has passed their probation period would be.
Although there is no legal limit to probationary periods in New Zealand, the standard probationary period in New Zealand is between 3 and 6 months. A clause detailing the probationary period must be included in the employment agreement.
As well as Probationary Periods, some employers in New Zealand can also use Trial Periods to assess new employees. Trial Periods can only be used by employers with 19 or fewer employees, and last for a maximum of 90 days.
The trial period gives employers more powers to dismiss employees. For example, if dismissed during the trial period, an employee can’t bring a personal grievance for unjustified dismissal.
Yes, just as employers can choose to remove the probationary period and commence employment early, they can extend the probationary period.
Any changes to the initial employment agreement must be agreed with the employee, in writing.
Yes. If an employee has breached any terms of the employment agreement, the employer is within their rights to terminate a contract during probation. Of course, the employer must be following company policy, as stated in the employment agreement in order to justify the dismissal.
It’s important to note that an employer cannot abruptly tell an employee to leave their job during, or at the end of, the probationary period. The employer must assess an employee who is on probation fairly and provide feedback and training where necessary. If the employer finds that the employee’s work was not good enough, they must explain why it was not good enough as justification for ending their employment.
Employees on probationary periods have the same minimum rights and entitlements as any other worker. Unless the dismissal is for serious misconduct, employers must provide the pre agreed amount of notice, as set out in the notice period clause in the employment agreement.
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Yes, there is no law prohibiting dismissal during the probationary period in New Zealand. The pre agreed amount of notice, as set out in the employment agreement must be provided. Note that employers must follow a fair process including providing feedback and offering training to the employee during the probationary period.
An employee can resign during the probationary period. The employee must notify their employer in writing and give the required notice period, as set out in the employment agreement.
Employers must follow a ‘fair and proper’ process when dismissing an employee or terminating an employment agreement. Other than in cases of ‘summary dismissal’ for serious misconduct, the employer must inform the employee of their intentions and give the required notice period. In some cases, employers choose to pay the employee instead of requiring them to work their notice period.
Employers can dismiss an employee for a range of reasons, including performance issues or incompatibility, but generally, dismissal is due to redundancy or repeated misconduct.
