A trial period allows employers to assess whether a new employee is suitable for a role. During this time, an employer may dismiss the employee without the employee being able to raise a personal grievance for unjustified dismissal—provided the trial period is valid. When used correctly, trial periods can be a valuable tool for employers, but they are often challenged. It is therefore crucial to understand when they can be used and what is required.

Key requirements

The trial period clause must meet the requirements in sections 67A and 67B of the Employment Relations Act 2000.

• The trial period begins on the employee’s first day of work and may last for up to 90 days.

• The employment agreement must clearly state when the trial period starts and how long it will run.

• Both parties must agree to and sign the employment agreement before the employee starts work.

• The employee must be given a reasonable opportunity to seek independent legal advice.

• The employee must be a new hire who has not previously worked for the employer.

• During the 90-day period, the employer may dismiss the employee if they are not suited to the role.

• The employer must give written notice of dismissal within the trial period, even if the employment end date falls after the 90-day period.

If you have any questions, please reach out.