KEY POINTS:
The Government's pre-Christmas economic package should include a 90-day grievance free period giving employers confidence to re-hire as soon as possible, says the Employers and Manufacturers Assn.
Employment services manager for the EMA (Northern) David Lowe, said such a law will encourage small businesses to more quickly move to hiring.
"National's 90-day law proposed for small businesses with fewer than 20 employees will encourage those employers who have had to restructure or downsize to re-hire sooner rather than later.
"Employers err on the side of not hiring if they have any doubts.
Lowe said the association's Small Business Advisory group had reported the prospect of expensive personal grievances put businesses off hiring - "the opposite of what we need".
"People looking for work need employers to take a chance and give them a job.
Lowe said the 90-day grievance free trial law was common-place around the world, with New Zealand and Denmark being the only countries in the OECD without it.