Government backs down on 90 day trials for small businesses

The Herald reports:

The Government will scrap the controversial 90-day trial for all but small businesses, as a result of lobbying from New Zealand First.

Prime Minister Jacinda Ardern will announce the first tranche of employment law reforms today, including 15 measures that it promised in its 100-day plan.

The Herald understands that the 90-day trial period for new workers will only be available to businesses with fewer than 20 employees. All employers will still be able to use probationary periods, which unlike 90-day trial periods do not allow unjustified dismissal.

According to the Ministry of Business Innovation and Employment, 29 per cent of all workers work for businesses with fewer than 20 employees; 97 per cent of all enterprises have fewer than 20 employees.

I’m pleased Labour has backed down and will keep 90 day trial periods for small businesses. They are the ones who need this, as a bad hire can cripple a small business. Larger businesses are not so vulnerable.