Is a trial period allowed for new employees in New Zealand?

Yes, as of 2024, trial periods are once again permitted in New Zealand under specific conditions, including for companies with 20 or more employees, such as Horizons.


What Is a Trial Period?

A trial period allows employers to assess a new employee's suitability for a role within a defined timeframe. During this period, either party may end the employment relationship with limited legal risk, provided the terms are properly documented and legal requirements are met.


Key Conditions for Trial Periods at Horizons:

  • Permitted since 2024, including for employers with 20 or more employees

  • Maximum duration: 90 calendar days from the start of employment

  • Notice: While not legally required, it is strongly recommended that 1–2 weeks’ notice is given before terminating employment during the trial period

  • Unfair dismissal claims: Employees on a valid trial period cannot bring a personal grievance for unjustified dismissal, provided the trial period is correctly implemented


Important Notes:

  • The trial period must be included in the written employment agreement and agreed upon before the employee starts work.

  • The trial period cannot be extended beyond 90 days.

  • Horizons ensures that all trial period clauses comply with local employment legislation.

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