A 90-day trial period allows New Zealand employers to assess a new employee’s suitability for permanent employment while limiting the risk of an unjustified dismissal claim – the most common claim when an employee is dismissed by an employer.

Trial periods are strictly interpreted and enforced by the Employment Relations Authority (‘the Authority’) and Employment Court (‘the Court’) – even small mistakes managing a trial period can render them invalid, exposing an employer to successful personal grievance claims and financial remedies being imposed.