Employers Beware – Probationary Periods

The team at Prudentia Law have recently noticed a growing number of media articles related to employers finding they have hired employees based on embellished Curriculum Vitae (CV’s). If you have been caught in this position, there are obviously some legal steps you can take to remove such employees, but unfortunately, proving false information has been provided can often be difficult.

These circumstances highlight one of the main benefits that the 2009 legislative changes have had with respect to enabling employers to include PROBATIONARY PERIODS in the employment agreements they have with their staff.

While a PROBATIONARY PERIOD still affords an employee all the normal rights of an employment relationship, it allows the employer to actually assess whether the employee has the ability to perform the job as they may have advised in their interview, identify whether the employee has the necessary skills, and also allows the employer to determine if the employee is the right fit for the organisation.

While the PROBATIONARY PERIOD clause in an employment agreement is only available to employers with less than 20 employees, it is an important provision to consider if you are an employer looking at hiring staff.

Please remember;

  • A written employment agreement is required for all your employees;
     
  • The PROBATIONARY PERIOD must be included in the employment agreement with the employee for it to be enforceable; and
     
  • An employer should always get the employment agreement signed as soon as possible (and preferably prior to commencement of the working relationship) to ensure the clauses in the agreement are as enforceable as possible.

If you would like to find out more about putting in place robust employment agreements for your employees, please Contact Us.

Signup for News & Updates

Please click below if you would like to subscribe to our electronic newsletters, legal updates and regular tips and tools database.
btn_sign_up.jpg

About Us

Prudentia Law’s legal team is focused on providing specialised trust, property, and business advice to meet each customer’s unique needs and requirements. We have multi-disciplinary team members with legal, tax and accounting qualifications for assisting with clients’ total personal and business legal issues.

Contact Us

Phone:  + 64 9 912 1985
Fax:        + 64 9 912 1982

Suite 14, 160 Broadway
Newmarket
Auckland,
NEW ZEALAND