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Employers likely to use trial period

Wednesday 22nd December 2010 2 Comments

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Half of employers surveyed by the Employers & Manufacturers Association have decided to use the 90-day trial periods when they become available in April and 8% have decided not to. The others are still considering their options.

Under the Employment Relations Amendment Act passed by Parliament this year from April 1, 2011, the 90-day trial period provisions will be available to every employer.

The survey also showed that 17% of employers were definitely planning to hire staff next year and 35% say they probably will. Just 11% definitely or probably will be looking at making people redundant.

Last year 51% of respondents reported they gave a zero wage increase whereas this year only 11% did not increase wages.

Overall, wage increases are well down from previous years. Collective bargaining settlements averaged 2.1%.

There has been a shift from one year collective agreements to two years as companies tried to remove the threat of strike action in Rugby World Cup year.



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Comments from our readers

On 22 December 2010 at 4:59 pm antoni said:
For me, it will depend on where the staff have come from. If I expect them to leave current employment, is it reasonable not to give them some certainty? If they are coming from a benefit, they wont have any problem taking a 90 day trial.
On 23 December 2010 at 8:59 am Peter Poeschl said:
What does "use the 90-day trial period" exactly mean? Have those employers already decided to fire staff they are going to hire next year?
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