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Currently, employers who employ fewer than 20 employees (as at the beginning of the day the employment agreement is entered into) are able to have a new employee go through a trial period of 90 days or less. During the trial period, the employer may legally dismiss the employee and the employee will not entitled to bring a personal grievance (legal claim) or other legal proceedings against the employer regarding the dismissal.
For a trial period to be valid:
·The employer must have fewer than 20 employees at the beginning of the day the employment agreement is entered into.
·the employee cannot have been an employee for the employer previously.
·the trial period must be agreed to in the employment agreement before the employee starts work.
·there must be a valid notice period in the employment agreement. A trial period provision, if relied on, may incorporate a notice period of a different duration to that of the usual notice period, e.g. 1 week compared to the ordinary notice period of 4 weeks.
·The trial period provision must state that the trial period starts from the first day of employment.
·The trial period cannot be for more than 90 days but can be for less.
·The employee needs to be given notice of termination before the end of the trial period. Depending on the wording of the trial period clause in the employment agreement, the dismissal may still be valid even if the employee’s last day of work occurs after the trial period ends.
Other than the dismissal under the trial period, the employee concerned may still be able to bring a personal grievance for other employment related issues.
An employee who is subjected to a trial period is still required to be treated in good faith and no differently from other employees whose employment agreements may not have a trial period, or a trial period that no longer is in effect.
If an employer relies on a trial period to dismiss the employee, the employer does not need to provide the employee with its reasoning for doing so.
Given the significant consequences of a trial period, i.e. that an employee may be legally dismissed, the rules regarding trial periods need to be strictly followed for the trial period to be valid. An employer who relies on an “invalid” trial period may end up having to pay monetary compensation to the affected employee due to dismissal being unjustified.
Whether you are an employer or employee looking to get some legal advice about a trial period, our experienced Ward Adams Bryan-Lamb team are here to help.