Chanel Finnigan No Comments

Holidays Act Changes – What Does it all Mean?

Significant changes to leave legislation are on the horizon, and we want to ensure you are well-prepared for what lies ahead.

It’s about time!

Potential changes to the Holidays Act have been on the agenda through multiple Government terms, and we were starting to wonder if it would just keep ending up in the too hard basket. Too many employers have been caught out with unclear and complicated rules, so we welcome the simplification and clarity these changes bring.

It’s important to note that, while this is an important step forward, there is a 24-month lead time before the new Bill takes effect, so the Holidays Act remains in place for the time being.

That said, it is important to start thinking about how these adjustments will impact your business to make sure you don’t get caught out with either legislative breaches or additional cost when the change happens.

To help you get ahead of the curve, we have broken down the key updates below:

  • Annual Leave: Accruals start from day one, proportional to contracted hours. Leave will be taken in hourly increments rather than full days. This will make life a lot easier for variable hours employees.
  • Annual Leave Cash-up: Employees may request to cash up 25% of their annual leave entitlement every 12 months (following their work anniversary). This allows employees with more than 4 weeks of leave to cash out larger portions and could cost more for businesses with additional entitlements for long serving staff members.
  • Sick Leave: Now earned from day one, proportional to hours worked, with a 160-hour cap. This replaces the current system of awarding 10 full days at once. Part-time staff will accrue leave based on their hours rather than receiving a flat 10 days, meaning less sick leave for part timers. This is what a lot of the complaints in the press have been about, but it seems a sensible approach.
  • Bereavement & Family Violence Leave: Remains a fixed number of days but is accessible from the first day of employment.
  • Casual Staff (“Pay as you go”): The rate increases from 8% to 12.5% to cover all leave types. Consequently, casual staff will no longer be eligible for paid sick or bereavement leave. This makes managing casuals easier but will increase your overall wage bill if you have many casuals in your workforce.
  • Additional Hours: Permanent employees working above their contracted hours will receive a 12.5% loading for those additional hours. This is a big change and will particularly impact businesses who have rosters with minimum guaranteed hours and staff that regularly work over that.
  • Public Holidays: Eligibility is now simplified to a single test: whether the employee worked 50% or more of that day in the preceding 13 weeks. Thank goodness for clarity, this will make public holiday pay a lot easier to manage.
  • Alternative Holidays: These will accrue at an hour-for-hour rate, rather than as a full day.
  • Leave Calculations: All leave types will now be calculated based on the employee’s base wage. Variable pay (bonuses, commission) is excluded; fixed allowances continue to be included. This will make it a lot easier to explain leave payments to your team and hopefully clear up many complaints.
  • Parental Leave: When taking annual leave after parental leave, it will be paid at the standard rate. Previous “override” rules that reduced payment amounts have been removed. Many businesses do this anyway, but it’s great to see a move which supports new parents as they return to work.

That’s a lot!

And while there may be differing opinions about how good these changes will be, from the number of pay remediations required in the last 5 years – there is no doubt that it’s needed!

So, what does this mean for you and what steps should you take right now?

  1. Understand the changes: There is a 24-month transition period before the Bill takes effect. You have ample time to plan.
  2. Assess the impact: Evaluate how these changes affect your specific business model. Pay close attention to costs and scheduling, particularly if you rely on rostered staff or minimum-hours contracts. Identifying these impacts early will help you avoid surprises.
  3. Contact your payroll provider: They will be planning to manage the technical transition. Reach out to understand their implementation plan and timeline early to ensure your internal processes remain aligned and the change runs smoothy.

As these changes are made, it will mean amendments to Employment Agreements and Policies. Also, a strong communication plan will be needed to inform your team.

But for now – understanding the changes is the first step.

As these changes are worked through and more information comes available, we will keep you updated.

We are here assist with any questions and provide the support you need.

Positive People have over 30 years’ experience helping businesses make change and ensuring legislative compliance. If you need help for any HR matter, contact us now on 0800 00 00 49 or info@positivepeople.co.nz

 

Chanel Finnigan No Comments

Is AI Making Your Team Lonely?

A recent article we reviewed predicted that by 2028 an average person will spend more meaningful conversation time with AI than any single human in their life.

Read that again.

More time in conversation with AI than your partner……more time than with your kids…….and definitely more time than with your work colleagues.

Wow!

The impact of this is significant.

We all know the benefits of AI. We know the potential cost savings and improvements it can bring, but have you also stopped to think about the downsides?

  • What impact will it have on your team?
  • Are they starting to feel lonely?
  • What about their overall well-being?
  • What plans can you put in place now to realise the benefits without losing the engagement, connection and commitment of your people?

Extensive AI use can erode human connection.

If relationships are weakened and people no longer have the need for their “work friends”, it impacts both their engagement and connection to your business, and their well-being.

It may feel like ChatGPT is a friend, but it’s no substitute for having a genuine laugh over lunch with a trusted colleague. And that’s the stuff that makes people love coming to work.

As you move forward in this AI journey, think carefully and deliberately about how to maintain human connection in your business.

  • More social occasions?
  • Meetings without laptops or screens, purely for discussions only?
  • Walking meetings?

Do whatever it is that will maintain connection in your work situation. In the long run you and your team will benefit from it.

Overuse of AI threatens cognitive skills and learning.

It’s a proven fact that for your brain to keep functioning at a high level, it needs to be used. When too much thinking is delegated out to AI, it has the potential to diminish critical thinking and learning opportunities.

  • Think about when use of AI is appropriate and when a human solution is important and integrate both into your AI strategy and business processes.
  • As AI reduces natural learning as part of everyday work, how do you keep your team moving forward, developing skills and keeping sharp in other ways?
  • Learning and development should also become an important part of your annual planning.

Team members can become overwhelmed with the pace of AI change and the need to keep up.

You may be excited about the improvement opportunities, time saving and cost reductions that AI can bring. However, as you become more deeply involved with AI and the faster it is adopted, the more processes and ways of working will change.

Think about the impact of these changes on your team.

Every improvement you make is a change for them, and just like any change, should be well communicated and advance at a pace which allows them to keep up. Your team still need to feel in control of their work and their outcomes, and be involved in the change to remain engaged and productive.

Sometimes it’s more effective for long term results to slow down a tad and make sure you have your team alongside you for the journey.

As the use and integration of AI increases, now is a good time to pause and get it right.

Having a plan that prioritises your people and utilises the benefits AI can bring will keep your team strong and successful for the long term.

Positive People have been supporting businesses to develop high performing teams for over 30 years. Contact us now on 0800 00 00 49 or here to find out how we can help you to develop an AI and engagement plan which works for you.

Chanel Finnigan No Comments

What Keeps You Awake at Night?

Is it the challenge ahead—or the opportunity hidden within it?

There is no doubt that our current world panorama is complex and perplexing.

History tells us that there have always been upheavals and global dissonance. Situations have existed that seemed impossible to come back from and with overwhelming challenges to overcome.

Think of Britain’s plight in World War 2.  In an embattled London, Churchill rallied his people to be resilient, tenacious and ultimately victorious. Ukraine is currently beating the odds in the Ukraine/Russia war not only through great leadership, but also via amazingly innovative technology. In a matter of a couple of years Ukraine has become the global leader in drone technology and now is on the way to becoming one of Europe’s leading military powers.

Adversity, faced with the right mind set and resolute leadership, can change your direction and create successful outcomes.

Many in our New Zealand business environment are facing extreme difficulties and are having to have a really good think about what they can do to both survive and prosper. It is not an easy challenge to overcome. But there are ways.

It starts and finishes with your leadership team.

Difficult commercial situations require a clear head, a calm demeanour and the ability and skills to lead from the front. Is your Leadership Team up to it?

A clear head means that the goals and ambitions of the organisation are grounded in reality. Have you sat down and considered these in the current environment? Have you reset your goals? This may mean revisiting some of your basics. It may require some fine-tuning to reduce ambitions.

Alternatively there may be a need for some left field thinking that stretches your ambitions in a slightly different direction. Don’t discount any of your thoughts. When one door closes another one opens.

A calm demeanour allows your team to have confidence that you have the confidence to lead them through tough times. This is a tricky path to walk down because any head winds do need to be acknowledged as real and difficult but also need to be seen as positively challenging and able to be overcome. They can in fact become exciting once you start to get some runs on the board and register some wins. Wins take you forward so are really important for your team’s motivation. Even small ones are an advance and each one matters.

Also of great importance is the leaders’ core strength to resolutely and determinedly keep their shoulders to the wheel.

 

 “80% of success is pitching up”.

Woody Allen

The ability to lead from the front demands a set of skills that encompass all the basics such as communication, motivation, problem solving, time management, managing conflict, innovation and improvement, and delegation. It also requires a good dollop of emotional intelligence.

Using these skills to keep your team pushing hard for success in a difficult economic situation is what makes the difference. It will allow your business to succeed or fail.

So, lying awake at night can go one of two ways.

 It can either be fraught with worry about what might happen to the business, or it can be about excitement as you pro-actively search for and find new ways to navigate hard times and emerge successful.

Positive People has over 30 years of experience coaching and training leaders to become the sort of people that others want to follow.  

See our programs here and call us on 0800 00 00 49 to find out more.

 

 

 

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Effectively Dealing with Employee Complaints

Across the board, we are seeing a clear increase in employee complaints – both from current and ex-employees. Over the last 6 months our statistics reflect a 20% increase in support for clients with this type of work for us here at Positive People.

Against the backdrop of an unstable global economy, the use of AI by employees and the presence of a solid group of keen adversarial employment advocates has fueled the complaints fire. We have noticed that complaints lodged:

  • Increasingly use strong language
  • List a number of allegations
  • Demand an almost immediate response
  • Pressure starting “without prejudice” conversations.

This can feel stressful and expensive. Often your first thoughts can be either “this is complete rubbish” or “how can I make this go away?”

Depending on the situation, sometimes a negotiated settlement is the pragmatic path to follow. However, don’t rush into anything or bow to pressure tactics.

If you receive a complaint – take a deep breath, don’t believe everything that has been written and most importantly – don’t panic!

You do not have to respond in two days.

It is important to properly understand and consider the issues raised carefully. Acknowledge receipt of the complaint and set a realistic date for you to respond. A reasonable timeframe is between 7 and 14 days.

Determine what you are dealing with.

Personal Grievances must be raised within 90 days (unless it’s for sexual harassment) and there is a clear list of the reasons PGs can be raised (Personal grievances | Employment New Zealand.) The complaint you received doesn’t have to be labelled as a PG to be considered a PG, but making sure you know the difference between a PG and a complaint will ensure your respond appropriately.

What do they want?

Sometimes the complaint you receive will clearly state the outcome they are looking for.  If it is from a current employee, this may not be outlined. If that’s the case, we suggest meeting with them, offering them a support person of their choosing, and asking what outcome they are looking for.

It might just be that they just want some form of specific behaviour to stop or to report to a different manager or something similar. If that is the case, and it’s reasonable, you can move forward in that direction without a big formal process.

Make sure you document your actions and confirm their agreement in writing. Ideally you can reach an amicable and constructive outcome.

Does the complaint have merit?

Look objectively at the facts, rather than responding to a personal comment or inflammatory statements that may be made. You may end up following one of the paths below:

  • Yes – consider a “without prejudice” conversation if they have asked for one or for attending mediation. Preparing a full written response and negating what you can will help. It can be that the most appropriate solution is a pragmatic one which can minimise time, cost and impact on the business.
  • No – It’s OK to push back. You can decline a “without prejudice” conversation, you can decline mediation and you can say you don’t agree. We suggest a clear written response that outlines your reasons and point of view. Then leave the ball in their court. Pursuing a complaint is expensive for the other party as well, so sometimes this is enough to help them realise that following a certain course of action is not worth it.
  • Don’t know – This is often the case when you receive bullying and harassment complaints. It can be difficult to know the truth without investigating the matter properly. In this case we recommend commissioning an independent investigation. Your response to the complainant should outline this and contain the process that you will follow.

Also remember, not every complaint results in a negative.

A complaint may present an opportunity to establish the cause of a complaint, highlight improvement areas for the business and for some positive learning.

If you are unsure where you stand when you receive a complaint, seek support before you respond. Understand that this is a complex area to negotiate.

In almost all cases, seeking help is the wise move because once you go down an incorrect path the potential negative consequences of cost, time and stress multiply rapidly and u turns become more difficult.

Positive People has over 30 years of experience supporting businesses manage employee complaints effectively.

We have registered workplace investigators and experienced employment relations professionals who can carefully guide you through the minefield that employee complaints can sometimes become.

If you have a problem, call us now on 0800 00 00 49.

Chanel Finnigan No Comments

Keeping the Lid on Distractions – Nurturing Management Team Cohesion

We all have those days where, as senior managers, we have important work to do, but are side tracked fighting fires, managing emotions and tiptoeing around people and issues.

This is all part and parcel of managing an organisation, but it does prevent us delivering on our work priorities. Just ask the Government this week!

A unified senior leadership team is an essential component of a successful organisation.

Keeping focus and unity within a Senior Leadership Team is a constant and on-going priority.

Distractions impede progress. Leaks, rumours, gossip and time spent managing internal and/or external public relations is all wasteful and means that more important and potentially critical issues take a back seat.

We have all seen this happen.

Whether it is a surprise promotion, rumours of poor performance, a personal scandal or simply the long-held dissatisfaction that fires up on the back of an apparently innocuous incident, these things can take on a life of their own, dominate workplace conversations and take up valuable time to manage.

Fortunately, most situations don’t usually play out in the media. This makes it far easier to control the environment and refocus your team on what is important.

  1. Maintain Professionalism and Lead by Example

The second you open the door to gossip or office politics by engaging in it or allowing these conversations to happen while you are present, you condone it. Think through your behaviour, let you team know when conversations aren’t appropriate and shut things down quickly when meetings or discussions descend into areas which aren’t productive.

  1. Encourage open and constructive communication

It may sound counterintuitive when we are also advocating shutting things down but often gossip or office politics can stem from an unpopular decision or action which may then require open and constructive dialogue to resolve. This allows for an objective focus on the root cause of the problem, rather than a series of personal discussions.

If everyone is talking about the IT team’s poor performance on a project, address the issue. Bring it back to facts, accept feedback and take meaningful action. Once you have done this and the issue has been addressed, a “move on” attitude tends to take over.

Pretending problems aren’t there just escalates the chatter.

  1. Develop your leaders to address issues

You may be handling the situation well but what about your managers? What happens when you aren’t present?

Develop your leaders to have the skills to recognise when conversations aren’t constructive.

Having leaders who have the skills and confidence to deal with these types of issues effectively makes a big difference as to how quickly you can refocus your team on important matters.

  1. Reinforce your values

Most businesses will have a set of values in place that contain some reference to how you should treat others….and this is a good time to reinforce this.

Remind your team why your values are important – not just a pretty picture on the wall.

Giving examples of behaviour which aligns with your values and what doesn’t, can be a powerful way of encouraging your team to self-reflect and change the conversations and interactions they are having with each other.

Left unchecked, office gossip, rumours and unresolved issues can have a significant impact on your team’s productivity, wellbeing and sense of safety.

 So, before you engage, or think “it will die down” take a moment to reflect on the organisation you want to lead and take action immediately.

Positive People have over 30 year’s supporting businesses to build productive engaged teams.

 If you need help managing a workplace situation, call us now on 0800 00 00 49.

Chanel Finnigan No Comments

Onboarding New Employees: Setting Employees up for Success from Day One

Hiring someone new to join the team is exciting, but what happens next matters just as much as the hire itself. Onboarding is where expectations are set, confidence is built, and new employees decide whether they feel like they truly belong. When onboarding is done well, people settle in faster, perform better, and are more likely to stay.

Too often, onboarding is treated as a checklist to get through on day one. In reality, it’s an ongoing process that plays a huge role in how successful a new employee will be.

Why Good Onboarding Matters

The first few weeks shape how a new employee experiences your organisation. It’s when they’re learning how things really work, who to ask for help, what “good performance” looks like, and how they fit into the team.

A strong onboarding experience helps new employees feel supported and confident early on. It reduces uncertainty, builds engagement, and sets clear expectations from the start. When onboarding is rushed or inconsistent, misunderstandings and performance issues are far more likely to appear later.

Onboarding Is More Than Forms and Policies

While paperwork and policies are important, onboarding shouldn’t stop there. New employees also need context including how decisions are made, how communication works, and what success looks like in practice.

This is the chance to talk through expectations, explain how the role works in practice, and share the thinking behind the way things are done. That understanding helps employees feel confident and make better decisions from the start

The Benefits for Employers and Employees

Good onboarding benefits both employers and employees. Employers see stronger early performance, fewer issues during trial or probationary periods, and better retention. Employees gain clarity, confidence, and a sense of connection, making it easier for them to ask questions and contribute sooner.

Simply put, people who feel welcomed and supported from day one are far more likely to succeed.

Simple Ways to Improve Your Onboarding

Effective onboarding doesn’t have to be complicated. Starting the process before day one, setting clear expectations early, and checking in regularly during the first few weeks can make a big difference. Introducing new employees to their team, assigning a buddy, and creating space for questions all help people feel more comfortable and engaged.

Regular check‑ins are especially important. They give new employees the chance to raise concerns early and show that support is available, not just on their first day, but throughout the transition.

Onboarding isn’t something that ends after the first day or even the first week. It’s a gradual process of helping someone find their place, understand expectations, and grow into their role.

When onboarding is done well, it sets everyone up for success. Employees feel confident and connected, and employers benefit from stronger performance, better retention, and more positive working relationships.

Chanel Finnigan No Comments

How You Can Build Real Accountability in Your Team.

We all want results right now.

This means we need our team to meet sales and production targets, deliver quality products and services, and improve efficiency. And we want them to do this without us having to micro-manage everything they do.

Alongside the drive for results, a commitment to accountability from all in your team is essential. You need them to step up and take responsibility for getting things done.

“Accountability is the glue that ties commitment to the result.”

Bob Proctor

But this is often easier said than done. How often do you hear “I sent an email and no one replied” or “I didn’t have the right equipment”?

What you really want to hear is “I chased it down until I got an answer” or “I took the initiative to sort out our gear so we could get started straight away.”

If you need to shift your team’s thinking into pro-activity, improve accountability and get results, then take some time to consider these three questions.

  1. Does your team know what you mean by accountability?

It is easy to say to your team “You need to be more accountable”, but what does that actually mean to them? Does it mean always reaching targets? Does it mean doing more work or longer hours? Accountability can mean different things to different people, so be clear about what it means to you as their leader.

Accountability is taking responsibility for doing what you need to do —
owning your actions, your work, and the outcomes you deliver AND being answerable for resulting consequences.

Team members who are good at holding themselves accountable don’t always get things right, but they own their actions and results and keep working at the job until they succeed.

Communicating to your team exactly what you want will help them deliver.

  1. Does everyone know what they are accountable for?

Do your team clearly know that they are accountable for a specific task or outcome? Is there confusion about who owns which bits of a project? This is particularly true when you are delegating something. Do they truly understand that they have accountability for getting something done, not just flicking off an email and passing it on to someone else.

Being clear, being concise and defining exactly what outcome you are looking for will make this crystal clear for everyone involved.

  1. Do they all know what to do to show accountability?

Accountability and achieving results are two different things. However, success usually comes when team members are good at owning accountability. When they are good at this, they find solutions when things go wrong and they stop blaming others. They consider what their contribution to a problem is, they change and learn from mistakes. They then go again until they achieve the outcome they are looking for.

Having your team clearly understanding what accountability is and what is required from them will quantum leap the likelihood that they will succeed.

“A culture of accountability makes a good organisation great and a great organisation unstoppable.”

Henry Evans

Positive People have developed a unique, engaging and interactive ACCOUNTABILITY WORKSHOP, which improves accountability in the workplace.

If your team could benefit from this essential skill set enhancement, contact us now on

0800 00 00 49 or info@positivepeople.co.nz. 

Chanel Finnigan No Comments

Supporting Remote Workers: Flexibility with Responsibility

Remote and hybrid working is now a normal part of many workplaces, but supporting employees who work from home is about more than flexibility.  Even though the work is being done at home, employers still have clear responsibilities particularly when it comes to health and safety.

Health and Safety Doesn’t Stop at the Front Door

Under the Health and Safety at Work Act 2015, employers must, so far as reasonably practicable, ensure the health and safety of employees, including those working from home. Employees also have responsibilities; they must take reasonable care of their own health and safety and follow their employer’s health and safety policies and instructions.

Employers should take reasonable steps to identify and manage risks such as poor workstation setup, fatigue, or unsafe work practices. This works best when expectations are clearly communicated and employees feel comfortable raising concerns.

Why a Work from Home Policy Is Essential

If employees are working remotely, a work from home policy is strongly recommended. A good policy helps set clear expectations and manage responsibilities around:

  • Performance and availability
  • Health and safety
  • Privacy and confidentiality
  • IT security and data protection

It also helps ensure flexible working arrangements align with employment agreements and supports a consistent, legally compliant workplace.

Staying Connected Matters

Employees who regularly work from home may experience social isolation. Employers can help by supporting regular connection through office days, team meetings, or scheduled phone and video catch‑ups. Staying connected supports wellbeing, engagement, and performance.

5 Simple Ways Employers Can Support Remote Workers

  • Check in regularly about workload and wellbeing
  • Support regular connections with the team
  • Provide guidance on safe work practices eg: workstation setups
  • Set clear boundaries around hours and availability
  • Review arrangements periodically to ensure they remain effective

Remote work works best when everyone is clear, connected, and supported. Clear policies, regular communication, and shared health and safety responsibilities help create positive outcomes for both employees and employers.

Chanel Finnigan No Comments

The Employment Relations Amendment Act 2025 – Key Changes Employers Need to Know

The Employment Relations Amendment Act 2025 came into effect on 21 February 2026, introducing significant changes to contractor definitions, personal grievances, high income dismissal thresholds and collective agreement provisions.

Below is a practical summary of the key updates and what they mean for employers:

New “Gateway Test” for Contractors

Previously, contractor status depended on the “real nature of the relationship,” meaning the Employment Relations Authority could find someone was an employee despite being labelled a contractor.

Now, a worker will be treated as a contractor (and excluded from employee rights) if all of the following are met:

  • A written agreement states they are an independent contractor
  • They are free to work for others (except while performing agreed work)
  • They can subcontract (with limits) or are not required to work set days/times or minimum hours
  • They cannot be terminated for declining additional work
  • They had a reasonable opportunity to seek independent advice

If any requirement is missing, the traditional “real nature of the relationship” test applies.

The change applies immediately (except for existing cases before the Authority). For employers it provides greater certainty, but only where contractor agreements are properly structured.

High-Income Employees ($200,000+)

Employees earning $200,000 or more (total remuneration) can no longer bring unjustified dismissal personal grievances. Employers are also not required to follow certain good faith processes (such as redundancy consultation) when dismissing them.

  • Employees (new or existing) can contract out of this change.
  • Existing affected employees have 12 months to renegotiate terms if they don’t want this law change to affect them in the future
  • After 12 months, the law applies automatically.

This gives employers increased flexibility when managing senior employment relationships.

Reduced Remedies for Employee Conduct

Previously, where an employee contributed to the circumstances giving rise to a personal grievance, remedies could be reduced but not completely removed.

Under the new law, if an employee’s conduct amounts to serious misconduct and contributed to the situation, no remedies will be awarded at all. Even where the conduct falls short of serious misconduct, reinstatement or compensation may be unavailable, and any remedies can be reduced by up to 100%.

Importantly, the Act does not define “serious misconduct,” so we will no doubt see its scope develop through case law.

These changes considerably strengthen an employer’s position where employee behaviour has played a significant role in the outcome.

Removal of the 30-Day Rule – Union Environments

The requirement that new non-union employees must be employed on terms consistent with a collective agreement for their first 30 days has been removed.

You can now negotiate individual employment terms from day one. This restores flexibility in how new hires in unionised environments are engaged.

Expanded Trial Period Protections

Employees dismissed under a valid trial period cannot bring a personal grievance for either unjustified dismissal or now unjustified disadvantage relating to that dismissal.

This increases certainty where trial periods are properly drafted and implemented.

Clarified Justification Test

A dismissal will not automatically be unjustified due to minor procedural errors if the employer otherwise acted fairly and reasonably.

The Authority or Court may also consider whether the employee obstructed the process.

This reduces the risk of claims based purely on technical procedural flaws where the overall process was fair and reasonable.

Changes to Union Information Requirements

Employers are no longer required to provide union information or share new employee details.

This reduces compliance obligations and allows greater flexibility in negotiating individual agreements, with employees now responsible for proactively seeking union information.

These changes are already in effect, making it timely for employers to review their agreements, policies, and processes to ensure they align with the new legal framework.

Please feel free to get in touch on 0800 00 00 49 or info@positivepeople.co.nz to discuss how these changes apply to your organisation.

 

Chanel Finnigan No Comments

Trial or Probation Period? Getting the First 90 Days Right.

The first few months in a new role are an important period for both employees and employers. It’s a time to settle in, understand expectations, and see how well the employment fit works in practice.  Many employers use trial or probationary periods at this stage to help assess fit before making a long-term employment commitment, but the two are not the same, and getting them wrong can create unnecessary legal risks.

Here’s a clear, practical overview of how each works under New Zealand employment law.

Trial Periods

A 90‑day trial period can only be used for new employees who have never worked for the employer before. When valid, it allows an employer to dismiss an employee within the first 90 calendar days without the employee being able to raise a personal grievance for unjustified dismissal.

However, trial periods only apply if everything is done correctly. They must:

  • Be clearly outlined in the employment agreement
  • Be signed before the employee starts work
  • Be agreed after the employee has had a reasonable opportunity to seek independent advice

If any of these steps are missed, the trial period may be deemed invalid.

It’s also important to remember that if an employer chooses to enact a 90-day trial period clause they must provide the notice period stated in the agreement (or reasonable notice if none is specified) and other personal grievance rights such as discrimination or harassment continue to apply.

Probationary Periods

A probationary period is a set evaluation timeframe used to assess an employee’s performance or suitability and can apply to both new and existing employees.

There is no set maximum length for a probation period, although it must be reasonable (three months is a common duration). Unlike trial periods, probationary periods do not remove the right to raise a personal grievance.

That means if performance or suitability concerns arise, employers must follow a fair process.  This includes:

  • Clearly explaining expectations and concerns
  • Providing regular feedback
  • Offering support or training where appropriate
  • Giving the employee a genuine opportunity to improve

If after following the above steps there are still performance or suitability concerns, employers should clearly outline the reasons for considering an end to employment, supported by appropriate information, and give the employee a genuine chance to provide their feedback. While a probation period does not offer the same protections as a 90‑day trial period, following a fair and reasonable process can still allow decisions to be made efficiently, without the need for a drawn‑out process.

The key when it comes to trial periods and probationary periods is not just which option you choose, but how well you manage it. Clear agreements, early conversations, and consistent feedback during the first 90 days can significantly reduce risk and set up stronger employment relationships from the start.