Job probation gets mixed reaction

Published: 6:39AM Wednesday December 10, 2008 Source: ONE News/Newstalk ZB

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There's mixed reaction to the Employment Probation Bill which will give firms more freedom to get rid of new workers in the first 90 days.

The bill applies to businesses with less than 20 staff and allows a new worker to be sacked within 90 days of starting the job without being able to make a personal grievance claim.

The Business Council says the bill will give more opportunities to unskilled workers.

But workers' unions and the opposition say the bill will allow a flurry of unfair dismissals.

The Northern Employers and Manufacturers Association says employers forced to lay staff off will re-hire them sooner under the new law to be passed before Christmas.

"Small businesses often delay hiring new staff until they absolutely have to because of the current personal grievance laws," says David Lowe, the EMA's Employment Services Manager.

"So giving employers more scope to take a chance and hire sooner rather than later is good news for workers recently laid off."

He says the EMA has been critical of governments passing laws without public consultation but this law was recently examined by a Select Committee and "represents orthodox employment practice around the world".

New Zealand and Denmark are the only countries in the OECD without it, Lowe says.

Last week the Australian Labour government announced new employment laws that included a 12 month grievance free period for employers employing less than 15 workers and a six month grievance free period for all other employers, he says.
The UK also has a 12 month grievance free period of employment since 1996, Lowe says.

However Helen Kelly from the Council of Trade Unions says the new law will strengthen the hand of bad employers.

And the bank workers' union doubts there's any need for the new law to be passed under urgency.

Finsec campaigns director Andrew Campbell says the last thing workers need in a recession is another attack on their job security.

He says the bill should follow normal parliamentary procedures, including a select committee process.

Campbell says essentially workers would have no rights for the first 90 days of employment, and people can be fired for no reason.

He says National will lose support over the legislation very quickly.

Labour 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.

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