The legislation currently under consideration in the New Zealand house of representatives, as I write this, to enable a 90 day probation period for employers and employees for businesses of 20 workers and under is being rushed under urgency, so it can be allowed to be put into place April 1 2009. It is a good law and has come at a time in history when it is needed more than ever.
For many years, especially the last 9 of the Labour Government, employers have been put under the thumb by unscrupulous employees and deleterious employment law and have suffered undue stress from malicious and frivolous employment claims brought by disgruntled employees simply because they have not fit the purpose of employment, have not fit in with the company culture or other employees or have attempted to get away with theft, fraud or unacceptable behaviour in the workplace.
This has put small businesses on the back foot, has cost them money and time training sub-par workers and as a result productivity, profit and business growth has fallen.
It has simply been too hard to expand your small business and employing extra workers for this expansion has been a burden many small businesses simply do not want to face because of the possibility of being slapped with an employment fine by a litigious employee.
With a probation period of 90 days it provides opportunity and choice for new employees rather than the deleterious effects that the Labour opposition say it will have and employers will have the ability to easily grow their businesses and therfore our economy.
The ability for employers and employees to negotiate the terms of the probation before employment then sit down and discuss outcomes after 90 days will enable a better fit for both employer and employee.
If either the employer or employee do not get on or their are any problems both parties can mutually agree to walk away with no repercussions for either. Easy, quick, cheap and ultimately good for small business because the hiring and firing process is the key to a good start in the employer/employee relationship.
Small business is at the heart of the New Zealand economy and it is going to suffer more than ever over the next year or two.
Making changes to employment law such as this, along with a National Government promised simplification of red tape, tax law and heavy handed government regulation will help cushion the blow of the 1999-2008 Labour Government engineered recession we are currently experiencing and the bigger downturn to come due to global financial effects.
Employees have to remember that it is employers that take on the risk when running a business. Money is borrowed, mortgages are taken over personal property and the risk of getting unsuitable employees weighs heaving on their minds. Without the business employees simply wouldn't be able to make a living.
Of course one hopes that this is a reciprocal arrangement with benefits on both sides but we mustn't forget who the boss is.
This 90 day probation law has been a long time coming. Most other western nations have such a law and it is no accident of statistics that New Zealand has one of the lowest productivity ratings(and falling) of any of those nations.
The economy needs this law to complement other companion legislation to be passed to make our industry and economy grow sustainably again and its urgency is necessary because we have to do everything we can quickly to ameliorate the current world financial crises and associated economic fallout.
If we don't act now future generations will be berating us for sleeping while our economy burned.
Lets embrace freedom of choice, the ability to be flexible in employment issues and therefore the opportunity to work towards the future in a more efficient and productive way.
To do otherwise is simply socialist dogma with as much promise and future as a rat with venereal disease.
New Zealand has suffered under that regime for 9 years and today's urgency in Parliament is but one counter to that to redress the balance in favour of commonsense and a brighter future for all.
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c Political Animal & Share Investor 2008
To the mysterious benefactor who sent me a copy of The Headliner today a million thanks.
