The law change coming to NZ workplaces today

Photo / 123RF

Workplace trial periods, which are to end today for businesses that employ more than 20 people, have resulted in tens of thousands of Kiwi workers being sacked by their employers every year.

CTU president Richard Wagstaff says the trials "deny natural justice" and should not be allowed

Employment New Zealand says employers can put a new worker on a 90-day trial as long as it is in a written employment agreement before work starts and the employee has not worked at the company previously.

During the trial period, the employee can't bring a personal grievance for unjustified dismissal or other legal proceedings about their dismissal.

Wagstaff says the use of work trials has been problematic. "Research conducted by the Ministry of Business, Innovation and Employment (MBIE) shows tens of thousands of Kiwi workers are being sacked by their employers every year as employers take advantage of unfair trial periods."

Wagstaff says people who are employed on trial periods are being treated as disposable. "That's not how to treat people. Good employers don't tend to use the trial period anyway.

"We think it's the unscrupulous employers who abuse the trials."

When the 90-day trial was put in place, the National Government claimed it would create jobs because employers would be more likely to give a person a chance.

Wagstaff says: "Other research has shown that it does not make a difference to employment levels. It hasn't actually meant more jobs."

He says people aren't aware of how damaging these trials have been, probably because of the shame around being fired.

"People who get fired don't tend to talk about it — they just live with it. But these figures show that the abuse of the system is much more widespread than many people thought."

He says, "Our view is that when you fire someone, it's a seriously big deal. If you're hiring somebody you shouldn't do it casually as though this is without consequences.

"New workers, in particular, are very vulnerable. They shouldn't be seen as disposable, they should be seen as entering into a good-faith agreement where there is a reciprocal agreement to well-being and good outcomes.

"Trial periods just encourage the view that workers are disposable. Getting fired is an unpleasant experience. It's not good for self-esteem or confidence or all the things new workers need to develop at work. A lot of damage is being done on a far greater scale than people realise."

Wagstaff thinks mainly young people and people on low pay were being affected.

He says the first thing for an employer to do if they're having an issue with a new employee, is to look at how to make it work – but trial periods discourage that by allowing bosses to "dispose of workers in rapid succession".

"We think that creates a very unbalanced employer/employee relationship from the start. What we want to establish is respectful reciprocal relationships between employer and employees, not one-sided, unbalanced relationships."

Wagstaff says New Zealand didn't have trial periods in the past, and shouldn't have them now, even for employers of fewer than 20 people.

"They haven't helped with employment levels. There is no benefit to them — but there certainly is disadvantage. We think the trial periods should be eliminated for smaller businesses as well. They don't support employment, they just cause misery."