Local Labour with Rachel Jones

In 2011 the Government changed the Employment Relations Act to allow all employers to give new workers a 90-day trial period. It's a law that will disappear under a Labour government.

The rule means the employer can dismiss a new employee within the 90-day period without needing to give a reason.

The idea was this change would create jobs. Employers who were normally reluctant to hire new staff, because it was hard to get rid of them if they weren't any good, would have more flexibility.

However, the Ministry of Business, Innovation and Employment's own report reviewing the impact of the changes states it is not known if the introduction of the trial period has actually increased employment.

It also shows 27 per cent of employers have used the law to dismiss someone.

Think about this for a moment. More than one-quarter of new employees have been sacked within 90 days of starting work.

They didn't have to do anything wrong – the employer can just terminate their job.

This law change was always going to be open to exploitation, and that's what has happened.

It seems it is particularly being used to hire and fire young workers.

The age of workers being dismissed wasn't analysed in the Ministry's report, but anecdotal evidence from those who help the young suggests they are an easy target.

Hired in low-paying, low-skilled jobs, then let go before they become permanent employees, their confidence is knocked.

As a former small business owner, I get the desire to be able to dismiss someone if they don't work out well.

But I don't think it's fair to be able to dismiss them for no reason. We have laws around probationary periods already – laws requiring the employer to communicate with the employee about their job performance.

Surely that's a fairer way to go?

I'd be interested to hear what you think, whether you are an employer or employee. Email me at rachel.jones@labour.org.nz or message me at www.facebook.com/racheljonesfortauranga