HR Practice For Payroll Practitioners

HR Practice for Payroll Practitioners

Probationary clauses

Some employers like to add a probationary clause into their employment agreement. The purpose of a probationary clause is to include a timeframe that covers the employee’s initial period of employment when they are being assessed. If the employee does not reach the required standards set for the period it may result in termination of their employment. The problem with probationary periods is that if performance problems are discovered you have to use the same process you would use for any other employee. In a lot of ways there is no real benefit to the business in having a probationary clause included in an employment agreement. 67 Probationary arrangements Where the parties to an employment agreement agree as part of the agreement that an employee will serve a period of probation or trial after the commencement of the employment, --- (a) the fact of the probation or trial period must be specified in writing in the employment agreement; and (b) neither the fact that the probation or trial period is specified, nor what is specified in respect of it, affects the application of the law relating to unjustifiable dismissal to a situation where the employee is dismissed in reliance on that agreement during or at the end of the probation or trial period. Employers can use 90-day trial periods when hiring new employees. Trial periods must be agreed between the employer and employee in a written employment agreement prior to the employee starting work. Any trial period must be agreed to by the employer and employee in good faith and in writing as part of the employment agreement. The employer and employee must both bargain in a fair way about a proposed trial period. This includes considering and responding to any issues raised by the new employee. 90 Day Trial Period

An employer and employee may agree to a trial period only if the employee has not previously been employed by the employer.

An employee who is given notice of dismissal before the end of a trial period cannot raise a personal grievance on the grounds of unjustified dismissal. He or she may, however, raise a personal grievance on other grounds, such as discrimination or harassment or an unjustified action by the employer that disadvantaged the employee.

© New Zealand Payroll Practitioners Association, Sep 2024, Ver 12

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