Who can use a 90-day trial period in New Zealand?

Following amendments to the Employment Relations Act 2000 that took effect in December 2023, all employers in New Zealand — regardless of their size — may include a 90-day trial period clause in a new employee's individual employment agreement. Previously, trial periods were only available to employers with fewer than 20 employees. The change means large businesses can now also use section 67A of the ERA to include trial period clauses. However, the strict procedural requirements remain: the trial period clause must be in writing, included in the employment agreement, and agreed to by the employee before they commence work. An employee who has previously been employed by the same employer cannot be subject to a trial period with that employer. Under New Zealand law, specifically the Employment Relations Act 2000, parties should seek independent legal advice to confirm compliance with all applicable requirements and confirm the document meets the standards set by the relevant regulatory authorities.

What makes a 90-day trial period clause valid under section 67A ERA 2000?

For a 90-day trial period to be valid under section 67A of the Employment Relations Act 2000, three requirements must all be satisfied. First, the trial period clause must be in a written employment agreement — it cannot be oral or implied. Second, the employee must agree to the trial period clause before they start work. If the agreement is signed even on the first day of work, the trial period may be invalid. established standards is to provide the agreement to the employee several days before the start date, give them time to seek independent advice, and have it signed in advance. Third, the employee must be a new employee who has not previously been employed by that employer. If any of these conditions are not met, the Employment Relations Authority will treat the trial period as invalid, and the employee will retain the right to raise a personal grievance for unjustified dismissal from the first day of employment. Employers must also give proper notice of dismissal during the trial period — simply not continuing employment at the end of the trial is insufficient.

What employment rights does an employee have during a 90-day trial period?

During a valid 90-day trial period under section 67A of the Employment Relations Act 2000, an employee retains all of their usual employment rights except the right to raise a personal grievance for unjustified dismissal. This means the employee is still entitled to: be paid their agreed salary or wages at or above the minimum wage (Minimum Wage Act 1983); receive KiwiSaver contributions from the employer (KiwiSaver Act 2006); accrue and take leave entitlements under the Holidays Act 2003 (including annual leave, sick leave, and public holidays); have the employer meet its health and safety obligations under the Health and Safety at Work Act 2015; and be covered by the Accident Compensation (ACC) scheme. The employee can also still raise personal grievances on grounds other than unjustified dismissal, such as unjustified disadvantage, discrimination (under the Human Rights Act 1993), sexual harassment, racial harassment, or duress relating to union membership. If the employer fails to give proper written notice of dismissal during the trial period, the dismissal may be challengeable.

Can a trial period be longer than 90 days in New Zealand?

No. Section 67A of the Employment Relations Act 2000 expressly limits the trial period to a maximum of 90 calendar days. A trial period clause that specifies a period longer than 90 days is invalid and cannot be enforced. Employers may choose a shorter trial period — for example, 30 or 60 calendar days — if they prefer. The trial period runs from the commencement date of employment, not from the date the agreement was signed. If the employer wishes to extend the assessment period beyond 90 days, this cannot be done through a further trial period clause with the same employee. Instead, the employer would need to use other means such as performance reviews, probationary periods (which do not carry the same dismissal protections as trial periods), or a formal performance management process. Note that even after the 90-day trial period expires, the employer may still dismiss an employee for valid reasons, but must follow a fair process under the good faith obligations in section 4 of the ERA.

Does the $200,000 threshold in the 2026 ERA amendments affect trial periods?

The 2026 amendments to the Employment Relations Act 2000 introduced a threshold of $200,000 annual remuneration, above which employees who enter new employment agreements after 21 February 2026 cannot raise a personal grievance for unjustified dismissal. This is separate from the 90-day trial period under section 67A. The $200,000 threshold applies to the ongoing employment relationship after the trial period ends. During a valid 90-day trial period, all employees — regardless of salary level — are subject to section 67A and cannot raise a personal grievance for unjustified dismissal during the trial. The two provisions may overlap for high-earning employees: during the trial, section 67A removes the right to claim unjustified dismissal; after the trial, if the employee earns $200,000 or more, the 2026 amendment removes the same right for the duration of the ongoing employment. Employees at any salary level retain the right to raise personal grievances on other grounds throughout the employment relationship.

90-Day Trial Period Agreement (New Zealand)

Employment Relations Act 2000 — Section 67A Trial Period Clause

This 90-Day Trial Period Employment Agreement (the “Agreement”) is made under section 67A of the Employment Relations Act 2000 (ERA) between:

[Employer Name] (NZBN: [Employer NZBN]), of [Employer Address], [Employer City], [Employer Region] [Employer Postcode] (the “Employer”); and

[Employee Name], of [Employee Address], [Employee City], [Employee Region] (the “Employee”).

Together referred to as the “Parties”.

BACKGROUND

A. The Employer wishes to engage the Employee in the position of [Job Title], commencing on [Commencement Date].

B. The Parties agree that the employment is subject to a trial period of [Trial Period Days] commencing on the date the Employee starts work, as provided by section 67A of the Employment Relations Act 2000.

C. The Employee acknowledges that they have read and understood this Agreement, and have had reasonable opportunity to seek independent advice before signing it, and that this Agreement has been presented to them and agreed to before they commenced work.

D. The Employee confirms that they have not previously been employed by the Employer.

1. GOOD FAITH

1.1 The Parties acknowledge and agree that they owe each other the duty of good faith as set out in section 4 of the Employment Relations Act 2000. This duty requires the Parties to be active and constructive in establishing and maintaining a productive employment relationship, responsive, communicative, and not deceptive or misleading.

1.2 The good faith obligation applies throughout the employment relationship, including during the trial period and any process related to the Employee’s continued employment.

2. POSITION, PLACE OF WORK, AND HOURS

2.1 The Employee is engaged in the position of [Job Title], commencing on [Commencement Date].

2.2 The Employee’s primary place of work is [Place of Work]. The Employer may, on reasonable notice and after consultation, require the Employee to work at other locations as the business reasonably requires.

2.3 The Employee’s ordinary hours of work are [Ordinary Hours], or as otherwise agreed in writing.

2.4 Rest breaks and meal breaks will be provided in accordance with the Employment Relations Act 2000.

3. REMUNERATION AND KIWISAVER

3.1 The Employer will pay the Employee [Salary] (gross, before tax), payable [Pay Frequency] by direct credit in arrears.

3.2 The Employee’s remuneration meets or exceeds the adult minimum wage under the Minimum Wage Act 1983.

3.3 The Employer will deduct PAYE income tax and any other required statutory deductions (including KiwiSaver contributions, student loan repayments, and child support where applicable) from the Employee’s gross remuneration in accordance with the Income Tax Act 2007.

3.4 If the Employee is enrolled in KiwiSaver, the Employer will make compulsory employer contributions at the rate of [KiwiSaver Rate] of the Employee’s gross salary, in accordance with the KiwiSaver Act 2006. The minimum employer contribution rate is 3%.

4. 90-DAY TRIAL PERIOD

4.1 The Employee’s employment is subject to a trial period of [Trial Period Days] commencing on [Commencement Date] (the “Trial Period”), as provided by section 67A of the Employment Relations Act 2000.

4.2 During the Trial Period, the Employer may dismiss the Employee. Where the Employee is dismissed during the Trial Period, the Employee is not entitled to bring a personal grievance or other legal proceedings in respect of the dismissal under section 67A(2) of the ERA.

4.3 If the Employer decides to dismiss the Employee during the Trial Period, the Employer will give the Employee [Trial Notice Period] (or payment in lieu of notice at the Employer’s election).

4.4 The Employee acknowledges that:

this trial period clause was agreed to in writing before the Employee commenced work, as required by section 67A(1) of the ERA;
the trial period does not affect the Employee’s entitlement to raise a personal grievance on grounds other than unjustified dismissal (for example, unjustified disadvantage, discrimination, sexual harassment, racial harassment, or duress in relation to union membership);
all other terms and conditions of this Agreement, including remuneration, leave entitlements, KiwiSaver contributions, and health and safety obligations, continue to apply during the Trial Period; and
the Employee has not previously been employed by the Employer.

4.5 If the Employee is not dismissed during the Trial Period, or if the Employer does not give notice of dismissal before the expiry of the Trial Period, the Trial Period ends and the employment continues on the terms of this Agreement.

5. LEAVE ENTITLEMENTS

5.1 Annual Leave: After 12 months of continuous employment, the Employee is entitled to 4 weeks (20 working days) of paid annual leave per year, as prescribed by section 16 of the Holidays Act 2003. Annual leave accrues on a pro rata basis from the date employment commences.

5.2 Sick Leave: After 6 months of continuous employment, the Employee is entitled to 10 days of paid sick leave per year, as prescribed by section 65 of the Holidays Act 2003. Unused sick leave may be accumulated up to a maximum of 20 days.

5.3 Bereavement Leave: The Employee is entitled to bereavement leave in accordance with sections 69 and 70 of the Holidays Act 2003 (3 days for close family members; 1 day for others where the Employer accepts that the Employee has suffered a bereavement).

5.4 Public Holidays: The Employee is entitled to a paid day off on each of the 11 recognised public holidays under section 44 of the Holidays Act 2003 that would otherwise be a working day for the Employee.

5.5 Family Violence Leave: The Employee is entitled to 10 days of paid family violence leave per year from the first day of employment, in accordance with the Holidays Act 2003 as amended by the Domestic Violence — Victims’ Protection Act 2018.

6. HEALTH AND SAFETY

6.1 The Employer is a Person Conducting a Business or Undertaking (PCBU) under the Health and Safety at Work Act 2015 (HSWA) and has a primary duty to ensure, so far as is reasonably practicable, the health and safety of the Employee while at work.

6.2 The Employee must take reasonable care for their own health and safety, take reasonable care that their acts or omissions do not adversely affect others, and comply with any reasonable instruction given by the Employer to allow the Employer to comply with the HSWA.

6.3 The Employee’s entitlements in respect of personal injury are governed by the Accident Compensation Act 2001. The ACC scheme provides no-fault personal injury cover, and the Employee cannot bring proceedings for compensatory damages for personal injury covered by the ACC scheme.

7. NOTICE OF TERMINATION (AFTER TRIAL PERIOD)

7.1 If the Employee successfully completes the Trial Period, the following notice periods apply for any future termination of employment:

Employer to Employee: [Employer Notice Period], or payment in lieu of notice at the Employer’s election.
Employee to Employer: [Employee Notice Period].

7.2 Before any decision to dismiss the Employee after the Trial Period is made, the Employer will follow a fair and reasonable process consistent with the good faith obligations under section 4 of the ERA and the principles of natural justice.

8. EMPLOYMENT RELATIONSHIP PROBLEMS

8.1 If the Employee has a problem with their employment, they are encouraged to raise the matter with the Employer in the first instance so that it can be resolved informally.

8.2 If the matter cannot be resolved informally, the following services are available for the resolution of employment relationship problems:

Mediation: Free mediation services are available through the Ministry of Business, Innovation and Employment (MBIE). Either party may request mediation.
Employment Relations Authority (ERA): If mediation is unsuccessful, either party may apply to the ERA for a binding determination.
Employment Court: Either party may challenge an ERA determination in the Employment Court.

8.3 Personal Grievance: The Employee may raise a personal grievance under section 103 of the ERA for unjustified disadvantage, discrimination, sexual harassment, racial harassment, or duress relating to union membership. During the Trial Period, the Employee cannot raise a personal grievance for unjustified dismissal (section 67A(2) ERA). Outside the Trial Period, the Employee must raise a personal grievance within 90 days of the relevant action under section 114 of the ERA.

9. GENERAL PROVISIONS

9.1 Privacy: The Employer will collect, hold, use, and disclose the Employee’s personal information in accordance with the Privacy Act 2020 and the Information Privacy Principles.

9.2 Entire Agreement: This Agreement constitutes the entire agreement between the Parties in respect of the employment relationship and supersedes all prior representations and understandings.

9.3 Variation: Any variation to this Agreement must be in writing and signed by both Parties, as required by section 65(2)(b) of the ERA.

9.4 Severability: If any provision of this Agreement is found to be invalid or unenforceable, that provision is severed. The remaining provisions continue in full force and effect.

9.5 Governing Law: This Agreement is governed by the laws of New Zealand, including the Employment Relations Act 2000, the Holidays Act 2003, the Health and Safety at Work Act 2015, the KiwiSaver Act 2006, the Accident Compensation Act 2001, the Privacy Act 2020, and the Minimum Wage Act 1983. The Parties submit to the jurisdiction of the Employment Relations Authority and the Employment Court of New Zealand sitting in [Governing Region].

IN WITNESS WHEREOF, the Parties have executed this Agreement on the date last signed below.

The Employee declares that they have read and understood this Agreement, have had reasonable opportunity to seek independent legal advice before signing it, and that this Agreement was provided to them and signed before they commenced work.

SIGNED for and on behalf of the EMPLOYER:

Employer: [Employer Name]

NZBN: [Employer NZBN]

Address: [Employer Address], [Employer City], [Employer Region] [Employer Postcode]

SIGNED by the EMPLOYEE:

Employee: [Employee Name]

Address: [Employee Address], [Employee City], [Employee Region]

Employer

________________

Signature

Employee

________________

Signature

Maintained by Vladislav Sergienko, Founder·Template last modified: 2026-06-23·Report an error

What Is a 90-Day Trial Period Agreement (New Zealand)?

A 90-Day Trial Period Agreement in New Zealand sets out the duties, hours, pay, leave, and termination terms between employer and employee, consistent with the minimum entitlements guaranteed by the Employment Relations Act 2000.

The trial period was first introduced into New Zealand law in 2009, initially applying only to employers with fewer than 20 employees. Following amendments to the ERA that took effect in December 2023, the 90-day trial period became available to all employers in New Zealand, regardless of their size. This expansion means that large businesses, government entities (where applicable), and organisations of any size may now include trial period clauses in new employees' individual employment agreements, provided the strict statutory requirements are met.

Section 67A of the ERA sets out the requirements for a valid trial period. The clause must be included in a written employment agreement (not merely agreed orally). The employee must agree to the trial period clause before they commence work — this is a strict requirement, and courts and the Employment Relations Authority have repeatedly held that even signing on the first day of employment can render the trial period invalid. The employee must also be a new employee who has not previously been employed by that same employer. If any of these requirements are not satisfied, the trial period clause will be invalid, and the employee will have the full range of employment rights from their first day of work, including the right to raise a personal grievance for unjustified dismissal.

Despite the protection from unjustified dismissal personal grievances, a 90-day trial period is not a period in which an employee has no rights. All other employment rights remain fully in force. The employee is entitled to be paid at or above the minimum wage under the Minimum Wage Act 1983, to receive KiwiSaver contributions from the employer under the KiwiSaver Act 2006 (minimum 3% employer contribution), to accrue and take leave entitlements under the Holidays Act 2003, and to the full protection of the Health and Safety at Work Act 2015. The employee may also still raise personal grievances on grounds other than unjustified dismissal, including for unjustified disadvantage, discrimination, sexual harassment, racial harassment, or duress relating to union membership.

The good faith obligations imposed by section 4 of the ERA continue to apply during the trial period. While the employer does not need to justify a dismissal during a valid trial period in the same way as after the trial, the employer should still act in a manner consistent with good faith. This means the employer should give the employee proper written notice of dismissal (as agreed in the employment agreement), rather than simply ceasing to offer shifts or allowing the employment to drift to an end. Failure to give proper notice, or attempting to use a trial period in bad faith, may lead the Employment Relations Authority to look behind the trial period and scrutinise the employer's conduct.

When Do You Need a 90-Day Trial Period Agreement (New Zealand)?

A 90-Day Trial Period Agreement is needed whenever an employer in New Zealand wants to engage a new employee on terms that allow the employer to assess the employee's suitability for the role without the full personal grievance exposure that applies to ongoing employment.

The most common situation where this agreement is used is when an employer is taking on a new hire for a role where there is genuine uncertainty about the employee's fit — whether in terms of skills, attitude, workplace culture, or performance. The trial period gives the employer a defined window to assess the employee under real working conditions, without being committed to the employee long-term from day one. This can be particularly valuable for small and medium businesses where a poor hire can have a significant impact on operations and morale.

Since the December 2023 amendments to the ERA made trial periods available to all employers, larger organisations that previously could not use trial periods now have access to this tool. Employers who previously had to rely on probationary periods (which do not carry the same statutory protections) can now use the more strong section 67A trial period mechanism.

The agreement must be presented to the employee and signed before the employee starts work. This is the most critical timing requirement. Employers should therefore have the agreement prepared before making a job offer, or at the latest, provide it to the candidate as soon as the job offer is made. established standards is to provide the agreement to the employee several days before the commencement date, specifically direct them to seek independent legal advice if they wish, and confirm in writing that the agreement was signed before the commencement date. Keeping dated records of when the agreement was presented, when it was signed, and when the employee commenced work is essential for protecting the validity of the trial period.

The agreement is also needed when an employer wants to document clearly — for both parties' benefit — that the trial period applies and what the consequences are. Employees who understand the terms of a trial period before starting work are less likely to be surprised or aggrieved if the trial does not result in ongoing employment, reducing the risk of disputes. Clear documentation of the trial period clause, including the specific duration and the notice required for dismissal during the trial, protects both parties and provides a clear record if any dispute arises.

Employers should also use this agreement when they want to specify a notice period that applies specifically during the trial period (which may be shorter than the notice period that applies after the trial ends), and to document the standard post-trial notice period for ongoing employment.

What to Include in Your 90-Day Trial Period Agreement (New Zealand)

A valid 90-Day Trial Period Agreement for New Zealand must contain certain key elements to satisfy the requirements of section 67A of the Employment Relations Act 2000 and related legislation.

The trial period clause itself is the centrepiece of the agreement. It must expressly state that the employment is subject to a trial period of up to 90 calendar days commencing on the commencement date. It must specify that the employer may dismiss the employee during the trial period and that the employee cannot bring a personal grievance for unjustified dismissal during a valid trial (section 67A(2) ERA). The clause should also specify the notice period for dismissal during the trial and acknowledge that all other employment rights remain in force during the trial.

The parties and commencement date section must clearly identify the employer and employee, and state the commencement date. The commencement date is the start of the trial period. The agreement must be signed before this date to be valid.

The position and duties section should identify the employee's job title and primary place of work, as required by sections 65(2)(a)(ii) and (iii) of the ERA. The hours of work must also be specified in accordance with section 65(2)(a)(iv).

The remuneration section must state the wages or salary payable, in accordance with section 65(2)(a)(v) of the ERA. The remuneration must meet or exceed the adult minimum wage and should specify the pay frequency.

The KiwiSaver clause should specify the employer's contribution rate (minimum 3% under the KiwiSaver Act 2006) and acknowledge automatic enrolment provisions.

The leave entitlements section should reference the statutory minimums under the Holidays Act 2003, including 4 weeks annual leave, 10 days sick leave, bereavement leave, public holidays, and 10 days family violence leave. These entitlements accrue during the trial period.

The health and safety clause should acknowledge the employer's obligations as a PCBU under the Health and Safety at Work Act 2015 and reference ACC coverage under the Accident Compensation Act 2001.

The employment relationship problem resolution clause is mandatory under section 65(2)(a)(vi) of the ERA. It must include a plain language explanation of the services available for resolving employment relationship problems, including the 90-day time limit for raising personal grievances under section 114 of the ERA, and note that during a valid trial period the employee cannot raise a personal grievance for unjustified dismissal.

The notice periods section should specify both the notice for dismissal during the trial period and the notice that applies after the trial period ends. Both should be clearly distinguished to avoid ambiguity.

The governing law clause should confirm that New Zealand law governs the agreement and identify the relevant legislation, including the ERA 2000, the Holidays Act 2003, the KiwiSaver Act 2006, the HSWA 2015, the Accident Compensation Act 2001, the Privacy Act 2020, and the Minimum Wage Act 1983. The forms-legal.com 90-Day Trial Period Agreement (New Zealand) provides a ready-to-use template that meets New Zealand legal requirements.

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Reference this free template in an article, syllabus, or research note:

APA

Forms Legal. (2026). 90-Day Trial Period Agreement (New Zealand) (New Zealand) [Legal document template]. Forms Legal. https://forms-legal.com/new-zealand/employment/contracts/trial-period-agreement-new-zealand

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BibTeX

@misc{formslegal-trial-period-agreement-new-zealand,
  author       = {{Forms Legal}},
  title        = {90-Day Trial Period Agreement (New Zealand) (New Zealand)},
  year         = {2026},
  howpublished = {\url{https://forms-legal.com/new-zealand/employment/contracts/trial-period-agreement-new-zealand}},
  note         = {Free legal document template. Based on Employment Relations Act 2000}
}

Frequently Asked Questions

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90-Day Trial Period Agreement (New Zealand)

What Is a 90-Day Trial Period Agreement (New Zealand)?

When Do You Need a 90-Day Trial Period Agreement (New Zealand)?

What to Include in Your 90-Day Trial Period Agreement (New Zealand)

Cite this page

Frequently Asked Questions

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