90-day trial causes headaches for small business

90-day trial causes headaches for small business

A recent Treasury report showed the 90-day Trial Period has failed to create more jobs. Instead, it has caused more problems for small business people, say Max Whitehead, CEO of the Small Business Voice.

“The government and Business NZ promised that the 90-day trial period would get young people into jobs — employers would be less fearful of having unjustified dismissals against them,” says Mr Whitehead, “However, Treasury now says there has been no increase as promised. Instead, there have been a massive 564 employment law cases regarding the 90-day trial period.”

“John Key says everyone he talks to thinks the 90-day trial is working. Here’s the problem: The Prime Minister doesn’t talk to small businesses, and it’s them who are facing legal problems.”

“There are 12 technical points in law that are unknown to small employers that cause them to get the trial period wrong. For example, there are pre-employment obligations, and the clause has got be worded specifically right.”

Mr Whitehead says this isn’t a problem for big businesses; they have in-house legal and HR people. Small business people, however, don’t have that luxury.

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