Former employee won $20K after a flawed NZ dismissal process - here's how employers can avoid costly mistakes, procedural errors, and ERA rulings.
Published 31 January 2025 | 2 min read
Trial periods allow businesses to assess new employees before making long-term commitments, but they must meet strict legal requirements to be enforceable.
A recent Employment Relations Authority (ERA) decision highlights the financial and reputational risks of getting it wrong. An Auckland business dismissed a worker under an invalid trial period, resulting in a substantial compensation payout.
This case raises key issues for New Zealand businesses: when a trial period is legally binding, the importance of timely agreements, and the need for clear communication around performance concerns.