Mixed response to change in 90-day new employee trial

Virginia Nicholls
Virginia Nicholls
Otago employers and unions have reacted with a mix of "real disappointment'' and approval to changed 90-day employment trial provisions which took effect yesterday.

A key provision of the Employment Relations Amendment Act (2018) which came into effect has limited 90-day trial periods to businesses with fewer than 20 employees.

Otago Southland Employers' Association chief executive Virginia Nicholls said that was a "real disappointment''.

However, retaining the trials for smaller employers was a positive outcome for the association, which had strongly opposed removing the trials for new employees altogether.

Some other "quite significant'' changes, including an obligation for employers to try to conclude collective bargaining, also raised concerns, and the association had held briefings throughout Otago and Southland to update employers on all the changes, she said.

Otago Chamber of Commerce chief executive Dougal McGowan was pleased that 90-day trials had been retained for smaller businesses, which would help employers take a risk on hiring new staff.

Unite organiser Angus Wilson, of Dunedin, welcomed yesterday's changes, including to remove the trial provisions for larger firms, as a "good start''.

Other changes included strengthening collective bargaining and union rights.

Unions Otago secretary Malcolm Deans described the changes as "positive''.

john.gibb@odt.co.nz

 

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