Latest legal updates

90-day trial period

Still a challenge for employers: The processes around the 90-day trial period are still causing some headaches for employers. In late September a senior construction worker won a $40,000 payout for an unjustified dismissal due to his 90-day trial being invalid. In a nutshell, the employee did not sign the employment contract until after he had started work with his employer. Due to a variety of reasons, his employer wanted to terminate his employment using the 90-day trial provision. New employees must sign their employment contracts before they turn up for work on their first day, otherwise the 90-day trial period provision is invalid.

The case is expected to be appealed to the Employment Court.

90-day trial used by 59% of employers: A study undertaken by the Ministry of Business, Innovation and Employment earlier this year has found that 59% of employers have used the 90-day trial period for employees. The 90-day trial provisions were introduced in 2009 for employers with fewer than 20 workers, and it was extended in April 2011 to include all employers. The report shows that extending the use of trial periods to all employers has resulted in more employment opportunities, with one third of employers surveyed saying the provision has led to them hiring people they otherwise wouldn’t have.

The survey also evaluated the impact of changes to the Holiday Act, unions’ access to workplaces and also changes to streamline the resolution of employment disputes.

The changes were designed to improve the operation of the labour market by achieving lower compliance costs for employers, faster problem resolution, greater clarity and more choice and flexibility for employers and employees.

New drink driving limits introduced in time for Christmas

Lower breath and blood alcohol limits for drivers come into effect on 1 December 2014.For adult drivers, the current breath alcohol limit of 400 micrograms (mcg) per litre of breath will be cut to 250 mcg. The blood alcohol limit reduces from 80 mg of alcohol per 100ml of blood, to 50 mg.

Drivers who fail an evidential breath test with a reading of between 251 and 400 mcg of alcohol per litre of breath will receive an infringement notice with a $200 fine and 50 demerit points. Refusing to undertake, or failing to undergo, an evidential breath test, will set you back $700 as well as 50 demerit points.

Drivers who fail an evidential breath test with a reading of over 400 mcg of alcohol per litre of breath may choose to have an evidential blood test, and will also end up facing criminal charges.

So how much can you drink and stay under the limit? Our advice is not to drink and drive at all. If, however, you’d like to have a drink and still drive home safely the Institute of Environmental Science and Research (ESR) says that (dependent on your gender, body type/weight and so on) most people can have two standard drinks over the course of two hours. A standard drink is:

• 330 ml of 4% alcohol beer
• 100ml of 13% alcohol wine, or
• 32ml of 40% alcohol spirits.

Stay safe this summer please.

Relationship property update

In our Autumn 2014 edition we reported on a case of economic disparity under the Property (Relationships) Act 1976 where the Family Court had ruled an asset split of 70:30 in favour of the wife. This was a significant shift from the equal sharing regime. The husband appealed to the High Court (Jack v Jack (2014) NZHC 1495 [1 July 2014]). His appeal was dismissed and Justice Goddard upheld the 70:30 division.