The government says it is delivering on its commitment to extend the availability of 90-day trial periods to all employers.

“Extending 90-day trial periods to all employers gives businesses the confidence to hire new people and increases workplace flexibility,” says Minister van Velden.

“Whether a business has two or 200 employees, bringing on any new employee costs time, it costs money and it is in the best interests of any business to find the right fit.”

Retail New Zealand has welcomed the Government announcement to extend the 90-day trial period for all businesses.

“This Government decision is a real boost for the retail sector which has been under incredible pressure in the past few years,” says Retail NZ Chief Executive Carolyn Young.

Young says extending the 90-day trial for all businesses will make the retailers more agile to respond to the needs of their fast-moving businesses and will also give thousands of potential employees the chance to make an impression in the work force.

“The extension of 90-day trials also provides greater opportunities for employees,” says van Velden. “They allow employers to employ someone who might not tick all the boxes in terms of skills and experience but who has the right attitude, without the risk of a costly dismissal process.

“By extending 90-day trials to all businesses, not just those with fewer than 20 employees, we’re giving all businesses greater confidence to employ more New Zealanders.

“By adopting ACT MP Todd Stephenson’s Member’s Bill on 90-day trials, the government is able to progress quickly and provide certainty to businesses.

“The extension of 90-day trials will not affect other aspects of employment relations, such as the requirement to act in good faith, or worker protections regarding pay, conditions, leave, and health and safety.

“It is also important to note that extending the availability of 90-day trials does not mean that all new employees will have trial conditions, rather it provides the option to include this provision in employment agreements.

“The Bill will be passed under urgency before Christmas.”

Young says the announcement today is a terrific step to remove some recruitment barriers, but that the Government can do a lot more to support an industry which employs over 230,000 New Zealanders.

“I am afraid, we will still see long check-out queues in shops and malls around New Zealand leading into Christmas, as a result of the barrier our shop owners face in finding good staff. This busy period only highlights the recruitment problems in retail that are reaching crisis point over Christmas,” says Young.

Retail NZ has summarised the main issues in a Workforce Position Statement that highlights how the current immigration settings and sick leave for part-timers are among the major challenges for shop owners in finding new staff who often lack the most basic work skills.

“We estimate that we need to recruit over 13,000 new staff, many in skilled roles like the digital and data space, but the biggest gaps are the unskilled positions. 

“Unfortunately, the immigration laws require median wages to secure visas even for these unskilled jobs, which is often unaffordable for employers,” says Young, who adds that slow processing visas is exacerbating the problem.

During the Christmas break, many retailers fill their vacancies with University and high-school students who often have no work experience and the impact of Covid on learning means that many young people have lower numeracy or literacy skills, and some have little awareness of what is expected of them in a professional environment.

Young says that the current requirement to give 10 sick days to casual staff, whether they are full time or just work a few hours on a Saturday or Sunday is also causing significant headaches.

“If you have a staff member who only works on Saturdays, they can still take 10 Saturdays paid sick leave throughout the year, which is an anomaly that needs to be addressed,” says Young, who argues that it is fairer to retailers that sick days should become proportionate to the amount of days each person is contracted for.

The chief executive says that retail offers a genuine career path, from the shop floor to wonderful management and premium roles in specialist areas.

“Retail NZ works hard to change that perception and attract top calibre candidates at every level, but the past few years since the pandemic have been extremely challenging for retailers.

“We hope the new Government can offer a helping hand with employment laws that are fit for purpose and easy to use for business owners,” says Young.