90-Day Trial Period Guide

The 90-day trial period lets New Zealand employers hire someone new and assess if they’re a good fit before confirming ongoing employment. It gives both sides time to see if the role works without long-term commitment right away.

This rule matters for many New Zealand businesses, especially small and medium-sized ones. It helps employers reduce hiring risks and make better decisions. But it also protects employees, ensuring they understand their rights during the 90-day trial period.

‍

When used correctly, this policy can lead to fairer employment relationships. But if it’s handled poorly, like not following the Employment Relations Act rules, it can lead to personal grievances or legal disputes.

‍

In this guide, you’ll learn:

• What the 90-day trial period means under NZ law
• The difference between trial periods and probationary periods
• What rights employees have during the trial period
• How employers can use a compliant 90-day trial clause
• What happens if someone resigns or is dismissed during this time

‍

What Is the 90-Day Trial Period?

‍

The 90-day trial period allows an employer to end an employee’s employment within the first 90 days without the risk of a personal grievance for unjustified dismissal.

It applies only when:

• The employee is new to the company (not previously employed by the same employer).
• The trial clause is written in the employment agreement and signed before the employee starts.
• The business has 19 or fewer employees at the start of the trial period.

If any of these conditions aren’t met, the trial period isn’t valid.

‍

How Does the 90-Day Trial Period Work?

‍

Once the employee starts work, the 90-day countdown begins from their first day on the job.

During this time:

• Employers should monitor and review performance.
• Employees should receive clear communication, feedback, and fair treatment.
• Both parties can decide if the employment relationship is the right fit.

If an employer decides to end employment during the trial period, they must:

• Give the correct notice stated in the employment agreement.
• Do so within the 90 days, not after.

Tip: Keep written records of any performance discussions or meetings to show fairness and transparency.

‍

90-Day Trial Period vs Probationary Period

‍

These terms are often mixed up, but they have different rules.

Who can use it

• 90-Day Trial Period: Employers with 19 or fewer staff
• Probationary Period: Any employer

When it applies

• 90-Day Trial Period: Only to new employees
• Probationary Period: Can apply to new or existing staff moving roles

Employee rights

• 90-Day Trial Period: Can’t bring a personal grievance for unjustified dismissal
• Probationary Period: Can bring a grievance if dismissed unfairly

Purpose

• 90-Day Trial Period: To test new hires before full employment
• Probationary Period: To review suitability for a role or development needs

If you’re unsure which applies to your situation, our team at People & Culture can help you review your employment agreements for compliance.

‍

Employee Rights During the 90-Day Trial Period

‍

Even during a trial period, employees still have rights under New Zealand law.

They’re entitled to:

• A safe workplace and fair treatment
• Minimum wage, holiday pay, and break entitlements
• Protection from discrimination, harassment, or unlawful dismissal

Employers must still act in good faith, meaning they communicate openly, honestly, and respectfully.

‍

Resigning During 90-Day Trial Period

‍

Employees can resign during the 90-day trial period, but they must follow the notice period stated in their employment agreement.

‍

For example:If an agreement says “one week’s notice,” the employee must give that week before leaving; unless both sides agree otherwise.

‍

Employers should document resignations properly and make sure final pay includes any outstanding holiday pay and entitlements.

‍

Can You Extend a 90-Day Trial Period?

‍

No. The 90-day trial period cannot be extended under New Zealand law.

‍

If an employer wants to review performance beyond this time, they can use a probationary period; but this must be clearly written into the employment agreement and follow proper consultation.

‍

Key Takeaways for Employers and Employees

• A valid 90-day trial period must be written, signed, and used correctly.
• Only employers with 19 or fewer employees can use it.
• Employees still have full workplace rights and must be treated fairly.
• Employers must give written notice within the 90-day timeframe.
• The period cannot be extended or reused for the same employee.
• A well-managed trial period builds trust, clarity, and strong working relationships.

‍