As long as both the employer and employee agree, a new employee can be subject to a 90-day trial period.  This allows the employer to fire the employee within the first 90 days of employment without giving them a reason.  Furthermore, the employee may not raise a personal grievance for the dismissal.

However, it is crucial that the employer complies strictly to the requirements of the law if it decides to use this trial period.

In a recent case before the Employment Relations Authority, the employment agreement was not signed until after the employee had started work.  The employer subsequently dismissed the employee using the trial period provision.  However, the Authority said that because the provisions of the law had not been strictly adhered to, in that the agreement was signed after, rather than before employment commenced, the trial period provision could not be used and the dismissal was unjustified.  The employee was awarded 13 weeks lost wages and $5,000 compensation for hurt and humiliation.

If an employer intends to use 90-day trial period provision it is important that all the requirements of the law are adhered to, otherwise any dismissal using the trial period provision may be challenged by the employee.

For advice on how to correctly apply the trial period or for other employment law matters, please call Alan Knowsley.