Employment Relations (Trial Periods) Amendment Bill

I move, That the Employment Relations (Trial Periods) Amendment Bill be now read a third time.

The Employment Relations (Trial Periods) Amendment Bill extends the availability of the 90-day trial periods to all employers, repealing the Government’s policy that restricted it to just small and medium sized businesses. Under the current law, only employers with fewer than 20 employees can have the option of a trial period for up to 90 days within their employment agreements, and this Government is extending that provision to all employers. That will make a huge difference because larger businesses employ around 72 percent of all employees.

This Government has inherited a very bleak economic outlook and it’s of utmost importance that we give businesses certainty and confidence for the new year so that both employees and employers can hit the new year with certainty about the labour market, but, more importantly, that employers have confidence to give a new employee a fair go. So we’re wasting no time in making sure that we have changed the law before Christmas so that both employers and employees can keep their heads above water.

It doesn’t matter to this Government whether an employer has two or 200 employees. Every new employee that’s taken on is taken on with risk. It takes time, it takes money, and it takes energy. There’s a lot of relationship building, and both people want that relationship to work. We want an employment environment where people are the right fit for the right job, and we believe, as a Government, that this law will allow for employers to take a chance on more employees.

Apart from the cost of the dismissal process, retaining an employee who is a poor fit is not just costly to the business in terms of the dismissal process, but costly in terms of the whole culture of that workplace. Any employee—just one person—can really have a detrimental impact on everybody in that employment process. So we’re wanting to make sure that when it comes to that workplace, that we’re not seeing companies be less productive than they could be because of a poorly fitting employee. That’s because the costs and risks associated with dismissal can lead to a labour market with fewer employment opportunities, especially for those trying to get a foot in the door.

This issue of 90-day trials for small and medium or larger sized companies has been well canvassed through Parliament through the history of this institution. But we have heard from businesses, time and time again, that expanding the availability of their 90-day trials is one of their top priorities. It will help lift unnecessary regulation. It will help business owners across the New Zealand economy, which will help more job opportunities for employers, which will help employees and help their families and help all of New Zealand.

This bill is intended to encourage employers to take on new staff by reducing risks in the hiring process. It’s not particularly the case where employees—sorry, it’s getting a bit late. This is particularly the case where employers are considering employing someone that does not tick all the boxes in terms of their skills and experience, but they might have the right attitude. So I commend this bill to the House.

Debate interrupted.