Jul 7, 2008

At Last, Sensible SME Policy Announced

National has announced a policy that will be hugely popular with the SME sector. It will be particularly helpful to the employment of migrants, many of whom remain underemployed because of conservatism on the part of the SME sector.

National will allow small businesses to get rid of new workers during a 90-day trial period - a move Labour calls a "charter for abuse" of workers' rights.
The policy, which will apply to businesses with fewer than 20 workers, allows employers to dismiss staff in the first three months without risking a personal grievance claim for unjustified dismissal.
While probationary periods are already allowed under existing law, proper process must be followed before the worker is dismissed.
Workers can still take a personal grievance if they feel the decision not to keep them on is unfair.
Yesterday, National deputy leader Bill English said the policy would give small businesses some insurance so they could take a risk on workers they might otherwise be reluctant to employ, such as former prisoners or people with little work experience.