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Retail NZ not in favour of 90-day-trial abolishment

  • News
  • December 6, 2018
Retail NZ not in favour of 90-day-trial abolishment

Retail NZ has expressed its dissatisfaction with the move to get rid of the 90-day-trial for large businesses, says that in doing so potential employees lose the chance to prove themselves.

The new stance of the Employment Relations Bill has abolished the 90-day-trial for large businesses with more than 20 people.

Greg Harford, Retail NZ's general manager for public affairs said today that Kiwi’s who are the most in need for new opportunity will the ones effected.

"The 90 day trial period has been successful at creating opportunity for marginalised workers who would probably not otherwise be employable,” he said.  

“Taking on a new employee carries significant costs and risks for an employer, and this means that hiring managers are strongly incentivised not to take risks. All the 90 day trial does is allow employers to take a risk when employing someone who has a chequered history. If someone interviews well, but has performed poorly in a previous role; or perhaps has a criminal past; then in the absence of a 90 day trial they're not likely to be offered a job, or a chance to prove themselves.”

Harford said that although it is good the rule doesn’t apply to small businesses the employ fewer than 20 people, only 30 percent of businesses fall into that category.

“In the retail sector, over 70 per cent of all jobs are in larger businesses. Those firms will be less likely to take a chance on a new employee under the new rules…The passage of the Bill shows that the Government is not interested in helping to create opportunities for marginalised workers."

To find out more visit; www.retail.org.nz

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