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 reason for leaving employment.

Specific circumstances include where a client has:

• lost their job during an employment trial period of up to 90 days (except where the employer alleges misconduct)
• recently returned to New Zealand
• taken voluntary redundancy because another employee may lose their job if they remained
• left employment that isn't suitable

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

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 and no reason is provided by the employer.

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