90 Day Trial Employment Agreement Template for New Zealand

A 90 Day Trial Employment Agreement is a specialized contract that allows you to hire new employees in New Zealand with greater flexibility during their first three months of employment. Under the Employment Relations Act 2000, this agreement can only be used for employees who have never previously worked for your company, and it must be signed before they start work to be legally valid.

When do you need this document?

You'll need this agreement when hiring new staff where you want to assess their suitability for the role while managing your employment risks. This is particularly valuable for small businesses with fewer than 20 employees, as larger employers cannot use 90-day trial periods under current New Zealand law. Common scenarios include hiring for specialized roles where performance is difficult to assess during interviews, bringing on staff during busy periods where you need flexibility, or when expanding your team and want to ensure new hires are the right fit for your company culture.

Key legal considerations

The trial period clause is the most critical component of this agreement. It must clearly state that employment can be terminated at any time during the 90-day period without the usual procedural requirements, but you must still act in good faith. The agreement must include all standard employment terms including job description, remuneration, hours of work, and leave entitlements as required under the Holidays Act 2003. You cannot use this agreement with employees who have worked for your company before, even in a different capacity or as contractors. The termination provisions must comply with human rights legislation, meaning you cannot dismiss someone for discriminatory reasons even during the trial period.

Legal requirements in New Zealand

Under New Zealand employment law, your 90-day trial agreement must meet specific statutory requirements. The Employment Relations Act 2000 mandates that trial period clauses must be in writing and agreed to before employment begins. Your agreement must include minimum entitlements under the Holidays Act 2003, including four weeks annual leave, 11 public holidays, and five days sick leave. The Privacy Act 2020 requires you to handle employee information appropriately and include privacy clauses in your agreement. If you employ 20 or more people, you cannot use 90-day trial periods at all. The Fair Trading Act 1986 also applies, ensuring your agreement terms are clear and not misleading. Remember that even during a trial period, you must act in good faith and cannot dismiss an employee for discriminatory reasons prohibited under the Human Rights Act 1993.