Invalid Trial Period – Retail

The Employment Relations Authority (ERA) recently addressed a case in which a worker alleged unjustified dismissal and disadvantage in her employment.

Key Points

·         The worker began employment on October 12, 2023

·         The employer sent an email on October 9, 2023, referencing an attached employment agreement, however no evidence of this agreement was presented to the ERA.

·         The Employment Agreement containing a 90-day trial period was signed on October 23, 2023

·         On January 5, 2024, the employer emailed a dismissal notice citing the trial period provision.

·         After the worker's representative challenged this, the employer attempted to withdraw the dismissal and initiate a performance management process instead.

The ERA determined that the trial period was not valid as the worker was already employed when the agreement was signed.

The ERA ordered these remedies:

·         Payment for an additional week of notice ($600 gross)

·         Lost wages ($8,125 gross)

·         Compensation for humiliation, loss of dignity, and injury to feelings ($12,000)

·         A penalty ($2,500)

We can assist you to manage trial period dismissals, employee performance, navigate disciplinary processes or ensure your policies and agreements are fit for purpose

Contact us for assistance in this highly prescriptive area – 09 377 9891 or email us knowhow@knowhow.co.nz