Should we include a probationary period in the employment agreement? As per our previous article, "90 Day Trial Periods", if you have 20 or more employees you cannot include a trial period in an employment agreement, as an alternative, many employers choose to include a probationary period.

New Zealand is now well and truly in the next stage of its strategy in responding to the Covid-19 global pandemic - learning to live with Covid-19, specifically the Omicron variant, in the community. This will see employers facing a number of new challenges, including the management of large numbers of absences in the workplace and coping with flexible working arrangements.

The Employment Court decision has significant implications for employers in respect of target-based incentive payments, and holiday pay entitlements over annual closedown periods. The Labour Inspectorate and Metropolitan Glass jointly filed proceedings in the Employment Court as they were unable to agree on holiday pay calculations (Metropolitan Glass and Glazing Limited v Labour Inspector, Ministry of Business, Innovation and Employment [2020] NZEmpC 39).

Employers and employees alike have long been grappling with the Holidays Act 2003 ("Act") due to its complexity. Difficulties with compliance has resulted in employees receiving incorrect payments, being unaware of their statutory entitlements and employers owing significant amounts of historical underpayments. It is no surprise the Labour Government's announcement to review the Act was welcomed by many.

2020 has been a year of upheaval for employers. Now many employers are looking for different ways to employ staff where their requirements have changed.

Recently there have been a number of announcements by large employers overseas making the Covid-19 vaccine mandatory for customers and or employees. However, in New Zealand the Ministry of Health has confirmed that it will not be making the Covid-19 vaccination mandatory for New Zealanders. Given the current climate, employers in New Zealand are considering their options, including whether to make the vaccination mandatory in the workplace or even if they can encourage their employees to have the vaccine.

The Court of Appeal recently released a decision Metropolitan Glass & Glazing Limited v Labour Inspector Ministry of Business, Innovation and Employment [2021] NZCA 560 reversing an earlier ruling of the Employment Court regarding short-term incentive payments under the Holidays Act 2003.

Significant changes are coming to the immigration sector in New Zealand, which will have major repercussions on employers who are intending to hire migrants to work in New Zealand. The Accredited Employer Work Visa ("AEWV") is a new temporary work visa being introduced on 4 July 2022. This new visa is one step in the Government's five step plan for reconnecting New Zealand to the world after the Covid-19 pandemic.

Should we include a trial period in the employment agreement? A trial period is a tool that can be used by employers to find out if an employee is suitable for a role. During the trial period, an employer can dismiss the employee and the employee cannot raise a personal grievance for unjustified dismissal, so long as the trial period is valid. Trial periods if used correctly, are a great tool for employers. However, trial periods are often challenged, so it is essential employers know when to use them and what is required.