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National is planning to pass a 90 Day Employment Probation Bill through parliament before the end of next week, which could see an employee sacked within three months of starting a job.
The proposed law change ruffled feathers during the first debate of the new Parliament, provoking Labour and the Greens to say it strips workers of their rights.
National says a three month trial period will encourage businesses to take a gamble on a new worker.
"It's important at a time when New Zealanders might be losing their jobs, that they have the opportunity to get a new job and we think this will assist particularly the small and medium sized enterprises sector to take on employees," says Prime Minister John Key.
Leader Phil Goff says he is outraged at the move, saying a fundamental worker's right not to be dismissed without due process is being taken away without proper consultation.
He says National never told the public this law change would be a top priority, and there was no warning it would be rammed through under urgency
The new law will apply to businesses with fewer than 20 staff, a
new worker could be sacked within 90 days on performance grounds
with no chance for a personal grievance claim, although conditions
like sick leave and holiday pay would still apply.
"People can't be sacked for issues of discrimination and the likes,
and I think there is only one other OECD country which doesn't have
this kind of legislation and in most countries it's much broader
than the one we're introducing," says Key.
Green MP Sue Bradford says such significant legislation should go
through a full select committee process and deserves full
scrutiny.
And says the Bill is likely to be the first of a series of bitter attacks on the rights and wellbeing of ordinary workers.
Meanwhile, public opinion seems mixed.
"I think it's a good idea...it's not always possible to tell when you employ someone whether they are going to be a good fit for the organisation," says one member of the public.
Unions say 97% of businesses employ fewer than 20 people, and
more than 100,000 workers are in their first 90 days of employment
in those firms at any one time.
Also controversial is that this employment law will be pushed
through under urgency.