New Zealand laws is pleased to present this employment law update. Minister of Labour the Hon. Kate Wilkinson has welcomed a new study which shows that the government’s 90 day trial initiative for new employees is working out positively all around. The research, which was undertaken by the department of Labour shows that businesses are being encouraged by the new law to take a chance on a new employee when they might not otherwise have done so.
The new study apparently revealed that as many as 40 percent of employers who had taken an employee on trial had indicated that they would not have taken the staff member on had the new laws not been extended to all businesses.
Other positive news from the study was that of employers canvassed 80 per cent had in fact kept the employee on at the end of the 90 day trial period.
Reporting on the press release, New Zealand laws representatives reveal that the Minister had this to say when making the announcement. “Research by NZIER has previously told us that 90-day trials led to 13,000 new jobs in small and medium sized businesses,” Ms Wilkinson says.
“This latest research confirms trial periods allow employers to take on new staff, with the majority retaining their staff after the trial period is over. That’s great to see.
“The 90-day trials have been especially beneficial for young people and the long-term unemployed. It’s of clear benefit to both employers and employees.”
The trial period legislation was introduced in 2009 but did not apply to all businesses until 2011. The legislation has been shown to appeal to business owners and 70 percent of those polled indicated that they would continue to use the trial period.
As an employer myself I can report that the trial period legislation has been proved to work very effectively for my business. On one occasion only thus far were we able to identify that the person simply was not a fit for the job, something which they acknowledged themselves, leading to an amicable parting of the ways.
If the legislation is leading to more people in full time employment and therefore, lower unemployment then that is surely something to be celebrated.