Workplace trials in NZ
Workplace trials, they’re great for assessing potential employees, but there’s often confusion about how they work and if you’re compliant with employment law. Are they paid or unpaid? Does it need to be a simulated trial, or can it involve real tasks? How long is too long? Here are some key things to remember when conducting workplace trials.
1. Your business can’t benefit financially from the trial
During a workplace trial, a business shouldn't gain financially from the tasks the candidate undertakes, so you can’t get a person to do work that one of your paid employees would typically do.
For example, if you’re trialling candidates for a role as a barista, you can ask them to make a coffee for themselves or the hiring manager, but not for your paying customers. This helps ensure that the trial focuses on the task at hand or the skill you’re assessing, and makes it clear that the candidate isn’t an employee on a ‘try before you buy’ approach.
2. No payment during trials
Workplace trials should never involve payment of any kind, whether that’s company products, vouchers, or money. If your candidates receive payment during the trial, it may establish an employment relationship, which creates specific legal obligations for the employer. For example, if you didn’t offer the candidate a job, then you could be found to have unjustifiably dismissed the person (who would be an employee as you had paid them to carry out duties).
You need to be clear with job applicants that the trial is unpaid and solely for assessment purposes. That way you maintain the integrity of the trial process and avoid potential (expensive) disputes.
3. Keep it short
The duration of a workplace trial should be fair and proportional to the role being evaluated. There are no specific legal guidelines, but it's important to strike a balance between allowing enough time to evaluate the candidate’s skills and fit for the role while respecting their time and effort. Be aware that the longer a trial goes on, the more it could appear like actual employment to the candidate. Less is more: we recommend work trials last a few hours, at the most.
4. Clearly define the trial terms in writing
Before engaging a candidate on a workplace trial, make sure you write down the terms and conditions of the trial to ensure both parties understand what is expected.
When creating the document, clearly state that the trial is a recruitment tool to ensure the candidate is matched to the role before you proceed any further with the hiring process.
It should also set out:
- details of the trial and what tasks the person will perform - these should be specific to the role;
- its duration;
- that completion of the trial doesn't guarantee a job offer; and
- that participation in the trial is voluntary and the person
won’t be paid for their time.
Having everything in writing and signed by both parties minimises the risk that an actual employment relationship is established, and prevents misunderstandings that could lead to disputes and legal issues.
Done correctly, workplace trials allow employers to make informed hiring decisions while giving candidates a fair chance to showcase their skills and suitability for the role.
Like all employment matters, planning and process are key. If you use workplace trials to assess potential employees, approach them fairly and carefully, design the trial, and be transparent about terms and conditions, duration, and their voluntary nature.
If you need longer periods of time to assess a person, we recommend employing them using a valid 90-day trial (if you are a business of less than 20 employees) or probationary period (if you have 20 or more staff).
To discuss all your account matters please call us on 09 438 1001
