federated Farmers employment spokesman David Rose has welcomed the Government’s planned changes to employment law.


He welcomes next year’s extension of the 90-day probation period to all employers, rather than just those with fewer than 20 staff, and other changes.


“I think a lot of focus has been on the extension of the 90 day trial, but there’s actually quite a few changes coming through and we’re very happy with them.”


The changes include personal grievance case law where small irregularities in process will be given less emphasis than the actual substance of the claim.


“With regard to the Holidays Act, we are also glad to see that Government has left open the option for employees to cash in their annual leave, should they wish to do this.


“We think this is a good decision and it will provide flexibility that will be mutually beneficial to both the employer and employee,” Rose says.


Employers and employees will also be able to agree to transfer a public holiday day, as listed in the Holidays Act, to another day.


“Federated Farmers fully supports this change. Farming is a 365 day a year operation and both changes under the Holidays Act will ensure that farmers and their employees have more flexibility when allocating labour hours on-farm.”


As for extending the 90-day probation period for employees to businesses employing over 20 staff, it should enable dairy factories, meat processors, and other large employers to become more responsive.


“It enables the employee, as well as the employer, to realistically trial the workplace relationship. This makes it easier for employers to try younger or older employees as well as those from non-traditional backgrounds. That’s labour market flexibility.”


Rose says Federated Farmers believes once 90-days is bedded in and the fears of unions disproved, it should be further extended to 180 days for small and medium sized businesses with less than 49 employees.


“Small and medium businesses often lack the human resource depth of larger firms and 180 days would not set a global precedent either.”
Ireland has a 10-month probation period, and the UK a year, he points out.


Fonterra group director of human resources Jennifer Kerr’s response to the 90-day extension is more muted.


“It’s reasonable to think it could help pave the way for some people into employment with larger companies such as Fonterra when it is introduced next year,” she told Dairy News.


However, at present the cooperative doesn’t plan to use it widely, she adds.


“Generally speaking, we have low turnover rates because of our rigorous recruitment processes and preference for employing people with a demonstrated track record.”