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'No impact' from 90-day trial periods

NZ NewswireNZ Newswire 16/06/2016

The 90-day trial period for new workers has had no impact on the hiring of disadvantaged jobseekers, new research from Treasury shows.

Proponents of the controversial change to New Zealand's employment law had said disadvantaged jobseekers - such as beneficiaries, recent migrants and under-25s - would benefit from it because employers would be more willing to take the risk of hiring them.

But Treasury's research has found no evidence of that.

"We conclude that the main benefit of the policy was a decrease in dismissal costs for firms, while many employees faced increased uncertainty about their job security for three months after being hired," the just-released working paper said.

The 90-day trial periods were initially rolled out in 2009 for firms with fewer than 20 employees. It was extended in 2011 to all firms.

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