Ninety-day trial period scrapped for most employees, as PM announces major workplace law shake-up

January 25, 2018

The PM today announced in that 70 per cent of NZ employees will no longer have 90-day trials applying to them.

Jacinda Ardern has today announced a major shake up to New Zealand employment law, limiting the 90-day trial period for workers to those businesses with fewer than 20 employees.

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In Wellington today, the Prime Minister, alongside Workplace Relations and Safety Minister Iain Lees-Galloway, announced a new Bill to amend the Employment Relations Act 2000.

Its aim is to provide greater protection to workers, and lifting wages through collective bargaining.

Ms Ardern said the employment law changes would mean 70 per cent of Kiwi workers would no longer have the 90-day trial applying to them.

"Labour flagged during the election, and in fact for many years before, that it was our intention in government to restore fairness into our workplaces and balance into employment relations legislation in New Zealand," Ms Ardern said.

"It had been our contention that over many years the then National Government had eroded that balance and fairness in the workplace. We were committed to restoring that and that is what we're announcing today."

The PM said there is substantial anecdotal evidence that employees were working under unfair employment arrangements.

In a statement, Workplace Relations and Safety Minister Iain Lees-Galloway elaborated on the changes.

"Wages are too low for many families to afford the basics. This Government believes everyone deserves a fair day's pay for a fair day's work," Mr Lees-Galloway said.

"We will also reinstate key minimum standards and protections to employees, such as the right to prescribed meal and rest breaks and limiting the use of 90 day trial periods to businesses with fewer than 20 employees.

"This legislation is the first step in the Government's commitment to creating a highly skilled and innovative economy that provides good jobs, decent work conditions, and fair wages.

"This is the start of a progressive programme in workplace relations which includes the passing of historic Equal Pay legislation, lifting the minimum wage to $20 by 1 April 2021, and the creation of a framework for Fair Pay Agreements.

"The legislation is expected to have its first reading in early February and I encourage everyone interested in this important legislation to have their say at the select committee process." 

Requirements for mandatory meal and rest breaks will also be strengthened in the employment law changes, after the National Government gave employers the ability to compensate workers for missed breaks.

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