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Non-entitlement period should not be imposed

MSD may determine that a 13 week non-entitlement period should not be imposed if the client has specific circumstances that are considered to be good and sufficient reasons for leaving employment.

Good and sufficient reasons include where a client has:

  • lost their job during an agreed employment trial (except where the employer alleges misconduct)
  • recently returned to New Zealand
  • taken voluntary redundancy because another employee would lose their job if they remained
  • left employment that isn't suitable
  • worked for a temporary period.

Note the client will be subject to the usual commencement date and initial stand-down rules.

Clients who lose their job during an agreed employment trial

Employers can set a trial period when hiring an employee for up to 90 days from the date their employment starts. The employer can dismiss the employee for any reason during the agreed trial period, and they are not required to provide the reason.

To be valid, the trial period must be agreed to by the employer and employee in the employment agreement. The exact period must be stated in the employment agreement.

A 13 week non-entitlement period is not considered if the employment ceased during the agreed notice period.

Note if the employer alleges misconduct by the employee and provides evidence of the misconduct, a non-entitlement period can be considered.

For more information see:

Client's job ceases during an employment trial period

Clients returning to New Zealand from overseas

A 13 week non-entitlement period does not apply to clients who have returned to New Zealand after working overseas.

Voluntary redundancy

A 13 week non-entitlement period does not apply to clients who take voluntary redundancy, when staying in their role would mean that another employee may lose their job.

For more information see:

Legislation

  • Factors affecting benefit: voluntary unemployment or loss of employment through misconduct, etc sections 225-229 Social Security Act 2018
  • When employment agreement may contain provision for trial period for 90 days or less section 67A Employment Relations Act 2000
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