Warning over changes to 90-day trial: People will miss out on jobs

Episode of: The Mike Hosking Breakfast

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May 5, 20192m
Warning over changes to 90-day trial: People will miss out on jobs
May 5 '192m
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An employer advocate is warning that people could miss out on job opportunities because of changes to the 90-day trial period. As of today, only businesses with fewer than 20 staff members can use trial periods when recruiting new workers. Unions are welcoming the move saying medium and large businesses should have legitimate reasons for dismissing staff. However, employers' advocate, Alan McDonald, told Mike Hosking the scheme encouraged businesses to hire people it might not otherwise have chosen. "A lot of employees will miss out on opportunities that they would have got under the 90-day trial, that they won't get now." He said it is expensive to hire people and employers don't hire people just to fire them. "Say you're just hiring someone to stack shelves at the local supermarket, that costs about $3000. You don't put that money into somebody just to fire them at day 89." The Government decided to get rid of the trial based on a piece of research which said the 90-day trial didn't create an extra job, Noller said. "To a degree, I would agree with that, it maybe didn't create an extra job. But it created an awful lot of opportunities for people that weren't going to get them otherwise." He said young people and people who are trying to rehabilitate after coming out of prison are likely to miss out on opportunities. Medium companies will struggle the most because they don't have the HR resources that big companies doe, he said.

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