The 90-Day Trial Period: What NZ Employees Must Know Your rights before you sign that contract.
Ron Mckenzie | August 5, 2026
The 90-day trial period gets a lot of employees into trouble, mostly because they don’t realise what they’re signing away. Used correctly by an employer, it can limit your ability to bring an unfair dismissal claim. But the rules are strict, and if the employer gets them wrong, the trial period is invalid.
When can an employer use one?
Under sections 67A and 67B of the Employment Relations Act 2000, a valid 90-day trial period is only available to employers with fewer than 20 employees. It must be:
- In writing and in your agreement
- Agreed before you start work (signing on day one is often too late)
- Clearly worded to state the trial period and notice
What it does and doesn't do
If the trial is valid, the employer can dismiss you within the 90 days without you being able to raise a personal grievance for unjustified dismissal. But it does not remove your other rights: you can still raise a grievance for discrimination, harassment, or unjustified disadvantage, and the employer must still act in good faith
Before you sign
- Check the employer’s size. 20+ employees means a trial period can’t apply.
- Confirm you signed before starting. A trial agreed after you begin is usually invalid.
- Read the notice clause. Know how much notice you’re owed.
- Get advice before signing if anything is unclear.
FAQs
My employer said the decision was already made when they “consulted” me — is that legal?
No. Consultation must take place before the decision is finalised, with a genuinely open mind. An employer who has already decided the outcome before consulting has not met the legal standard. This is one of the most common procedural failures in NZ redundancy processes — and one of the strongest bases for a personal grievance.
My role was made redundant, but someone else is now doing very similar work — what does that mean?
It is a strong indicator of a sham redundancy. If the substance of your role has effectively been redistributed or a near-identical position has been created or filled shortly after your disestablishment, the redundancy may not have been genuine. Seek legal advice and document everything you know about what happened to your duties.
Am I entitled to a redundancy payout?
Only if your employment agreement provides for one, or you successfully negotiate one. There is no statutory minimum in New Zealand. However, if the redundancy process was flawed, you may be entitled to remedies through a personal grievance — including compensation for hurt and humiliation and lost remuneration — which can exceed any contractual payout.
My employer gave me 48 hours to respond to the restructuring proposal — is that enough time?
It depends on the complexity of the proposal, but 48 hours is generally very short for a significant restructure affecting your employment. Best practice under NZ law is to provide adequate time to seek independent advice, prepare a response, and genuinely engage. A tight deadline that prevents meaningful consultation is a procedural flaw that can undermine the entire process.
Can I challenge a redundancy if I’ve already signed my exit documents?
If the documents were signed and countersigned by an MBIE mediator, the settlement is likely full and final. However, if you signed an agreement directly with your employer without MBIE involvement, the position may be more complex. Either way, seek legal advice immediately — the window to act may still be open depending on the circumstances.
Talk to McKenzie Law before your next move
At McKenzie Law, we represent employees only — and we have seen every variation of a rushed, predetermined, or retaliatory redundancy there is. If you have received a redundancy proposal, if your consultation felt like a formality, or if you believe your role was not genuinely surplus — we want to hear from you.
McKenzie Law is an Auckland-based employment law firm representing employees across New Zealand — including Auckland, Wellington, Christchurch, Hamilton, Tauranga, and all regions. All content is general in nature and does not constitute legal advice. For advice specific to your situation, contact us directly.
