That means an employer will still need to put an employee on notice if there are concerns about performance and give the employee a real opportunity to respond to those concerns / demonstrate improvement over an appropriate period of time. They do not prevent an employee from raising a personal grievance for unjustified dismissal, and an employer must still follow a fair process before making a decision to dismiss under a probationary period. On the other hand, probationary periods are not as powerful.
#90 DAY PROBATION PERIOD FOR NEW EMPLOYEES TRIAL#
If these requirements aren’t met the trial period won’t be effective, meaning the dismissed employee will almost certainly have a valid personal grievance. Notice of termination under a trial period must also be given strictly in accordance with the terms of the employment agreement. can only be used for new employees and.must be signed before an employee starts work on their first day of employment (signing five minutes after starting work isn’t good enough).If a trial period is properly implemented and applied, then an employee cannot raise a personal grievance for unjustified dismissal.įor that reason trial clauses have been strictly interpreted by the courts. Trial periods are a very powerful restriction on an employee’s rights. In particular, employers need to be conscious that a probationary clause gives them far more limited protection, as compared to a trial clause. There is real potential for confusion and significant cost if managers don’t keep those differences in mind. While trial periods will no longer be available to larger employers if the Bill becomes law, probationary periods are in our view a useful alternative (smaller employers will still have the option of using both).Ībsolutely – while similar, the two types of clauses are very different. The Employment Relations Amendment Bill currently before select committee proposes to remove the ability to use trial periods for any employer who employs 20 or more employees.
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