van Velden Brooke; Kuriger BarbaraEMPLOYMENT RELATIONS (TRIAL PERIODS) AMENDMENT BILLFirst ReadingHon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): I present to the House a legislative statement on the Employment Relations (Trial Periods) Amendment Bill.DEPUTY SPEAKER: The legislative statement is published under the authority of the House and can be found on the Parliament website.Hon BROOKE VAN VELDEN: I move That the Employment Relations (Trial Periods) Amendment Bill be now read a first time. The Employment Relations (Trial Periods) Amendment Bill extends the availability of 90-day trials to all employers. It repeals the previous Government's policy of restricting this availability of trial periods to only small businesses. Currently only employers with fewer than 20 employees can include a trial period of up to 90 days in their employment agreements. By extending the 90-day trial periods to all businesses this will make a huge difference to the flexibility of the labour market because large businesses employ around 72 percent of all employees across New Zealand.The bill is being debated under urgency because in this Government's coalition agreement for the first 100 days we want to restore business optimism scrutiny certainty and confidence before Christmas. This Government has inherited a bleak economic outlook thanks to the previous Government's reckless spending and over-regulation. There is no time to waste in getting labour market settings right to ensure both businesses and workers can keep their heads above water. The 90-day trial periods were introduced in 2009 for small businesses and were extended to all employers in 2011. Extending the 90-day trials was part of a package of reforms that's intended to reduce costs support more effective and efficient processes and improve workplace productivity and flexibility. In 2019 the previous Labour-led Government restricted the availability of trial periods to smaller employers—those with fewer than 20 employees. This Government has heard the message loud and clear from businesses that they want 90-day trials back and this is a Government that will deliver.Whether a business has two or 200 employees bringing on any employee takes time it takes money it takes risk and it's in the best interests of both the employer and the employee to have the right fit in the workplace. Getting the wrong person can have a detrimental impact on a business and the whole culture within a workplace. Employers have consistently highlighted that the costs associated with dismissing an employee and the risk of a personal grievance claim can make them reluctant to hire a new staff member. Apart from the costs of the dismissal process retaining an employee who is a poor fit for a business can have a detrimental effect on the overall workplace as a whole. It will only take one worker who's got a poor attitude or simply doesn't have the right skills for the job to perform their duties to take down an otherwise very productive team.The costs and risks associated with this dismissal process could lead to a labour market with fewer employment opportunities particularly for those people who are doing their best to get a foot in the door. The costly dismissal processes can also make workplaces less productive. When businesses can only employ a certain number of people at a time because they are resource-constrained having a worker who is a poor match for the job can mean that more suitable job candidates end up missing out when they could have been in the best interest of that company.I have heard from businesses time and time again that expanding the availability of the 90-day trials would be one of their top priorities when it comes to lifting unnecessary regulations that they face every day.This bill will help farmers. Unlike most businesses farmers don't just offer prospective employees a job but they ask them to live on the property because it's common for farmers to provide on-farm accommodation as part of their employment.Retailers have said that the 90-day trial has meant that employers have to be prepared to take a risk to bring on new staff members who may not be the best fit and we need people who are given the opportunity to prove themselves—people who have a chequered employment history or a criminal background may not be given the opportunity because they don't have that ability for their business owners to take a chance. BusinessNZ identified that reinstating the 90-day trials was an election priority and the Employment and Manufacturers Association did as well. This bill is intended to encourage employers to take on new staff by reducing risk in their hiring process. It's particularly the case when employers are considering employing someone who doesn't tick all the boxes. They might not have the right skills they might not have the right experience but they might have the right attitude and this is a Government that says we should give them a go.Workers who are just starting out in their career and they've had a break from working or they're looking for a change will benefit from this bill. Workers that might be considered risky will benefit from this bill.Starting a business is incredibly brave. Taking on employees is incredibly brave. This bill will provide more flexibility in the labour market which is good for both employers and employees. I commend this bill to the House.