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90 Day Trial Periods
  • An employer who employs 19 or fewer employees is able to employ new employees on a trial period of up to 90 calendar days.

  • 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.

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

  • A trial period is not automatic for new jobs in small businesses. It only occurs if the employer and employee agree to it and must be in the Employment Agreement.

  • If any employment relationship problem arises during the trial period, or if the employee is dismissed, the employee and the employer can access mediation services.

  • 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.

  • If an employee agrees to a trial period, this does not affect his or her entitlements to holidays and leave.

  • If an employee leaves a benefit (WINZ) to take up a job which is terminated within the 90 day trial period, there is no stand down returning to the benefit.

If I am an employee

  • A new employer, who employs 19 or fewer employees, can provide you with an offer of employment that includes a trial period.

  • A trial period is voluntary, and must be agreed to in writing and negotiated in good faith as part of your employment agreement.

  • The written employment agreement should be signed by both you and your employer at the beginning of your employment relationship.

  • You and your employer must both bargain in a fair way about a proposed trial period. This includes the employer considering and responding to any issues raised by you.

If I am an employer

  • Employers who employ 19 or fewer employees are able to offer trial periods to new employees.

  • Any trial period that you agree to with a new employee must be agreed to in writing and negotiated in good faith as part of his or her employment agreement.

  • The written employment agreement should be signed by both you and your employee at the beginning of your employment relationship.

  • A signed employment agreement will reduce the risks of legal challenge.

  • You and the 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.

When does notice have to be given?

  • Notice must be given within the trial period, even if the actual dismissal does not become effective until after the trial period ends.

How many times can I agree to a trial period?

  • An employer and employee may agree to a trial period only once.

  • If an employee has previously been employed by the employer, they may not agree to a trial period.

  • For example, if an employee was employed for six months in 2006 and then applies for a position with that same employer in 2009, they cannot agree to a trial period.

What services are available if there is a problem during the trial period?

  • If any employment relationship problem arises during the trial period, the employee and the employer can access mediation services.

  • In addition, while the employee cannot pursue a personal grievance for unjustified dismissal if the employee is given notice of dismissal during the trial period, a personal grievance may be pursued on other grounds such as discrimination, harassment or an unjustified action by the employer that disadvantages the employee.

Suggested trial period clause

The parties agree that this employment is subject to a trial period of xxx days, pursuant to section 67A and B of the Employment Relations Act 2000.

The trial period shall begin on the date the employee commences duties and end on dd/mm/yy.

The employee acknowledges that during this trial period, the employer may dismiss the employee by giving one week’s notice prior to the end of the trial period and, in the event of dismissal, that the employee is not entitled to bring a personal grievance or other legal proceedings in respect of that dismissal.

Where do I go if I have further questions?

If you have further questions or concerns related to trial periods that are not covered by the information here, please contact the Department of Labour on freephone 0800 20 90 20.


More on Employment Agreements

  Employee trial periods   Can change pay frequency if properly managed
  More on secret video cameras   Appeal Court decision on harsh and oppressive contracts
  When is an employment relationship formed?   Employment contracts must be negotiated - they cannot just be presented
  Employer can still be bound by oral agreements   Discrimination for being on collective employment contract
  Common problems with employment agreements   Cannot limit remedies for personal grievances
  Take care when preparing employment agreements   Cannot dismiss without reason even if written in agreement
  Importance of disclosing correct employer   Can a collective employment contract negotiated with union members be applied to non union members?
  Disputes resolution procedure must be included in staff agreement   Employee must disclose information at interview only if asked
  Renegotiation of employment contract on sale of business   Cannot require all employees to apply for new positions
  Expired contracts continue with same terms and conditions   What an offer of employment might look like
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Updated: 31st March 2010
Published: 12th September 2009
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