Submission: Employment Relations (Probationary Employment) Amendment Bill

New Zealand Business Roundtable
8 July, 2006

The New Zealand Business Roundtable supports the proposed introduction of a 90-day probationary period for new employees. There are strong arguments in favour of the proposed reform. The key one is that it will have a positive impact on labour market outcomes for vulnerable workers because it would allow employers to ‘take a chance’ on individuals who might pose a ‘risk’ and a potential personal grievance if the job does not work out. This is particularly important given that groups such as youth and Maori continue to experience poor labour market outcomes. In 2005, the unemployment rate for Maori aged 15-24 was nearly 18 percent.

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