Trial period pitfalls

In December 2023, the (then) new government had passed legislation that reintroduced the use of trial periods for new employees being available for employers of all sizes. With the increase in employers' ability to use trial periods, it is another timely reminder that the rules regarding trial periods are enforced very strictly.

In the case of Finnigan v DogHQ 2020 Ltd the Employment Relations Authority (Authority) considered the use of a trial period. It's important to note that at the time of this case, only small businesses could use trial periods. Within a trial period, an employer may give notice of termination of employment and the employee is unable to bring a personal grievance for unjustified dismissal. DogHQ was a dog daycare service in Auckland. Ms Finnigan, the employee, was hired by DogHQ in July 2021. Only a few weeks after she started work, New Zealand entered a COVID-19 Alert Level 4 lockdown and DogHQ was unable to operate until mid-October. Ms