When a “Work for Cash Day” Undoes a 90‑Day Trial

A recent Employment Relations Authority (ERA) decision is an important reminder for employers on 90 day trial periods.

In George King v Off the Wall Construction Limited \[2026] NZERA 14, the ERA found that an employer could not rely on a 90‑day trial period because the employee had already been “previously employed”, even though it was just one day of ‘cash’ work before the employment agreement was signed.

The employee, Mr King, was interviewed for a role and was sent an Employment Agreement that included a 90‑day trial period. Before signing it, he was asked to complete a day’s work for cash. He agreed to this and was paid $350 in cash. A few days later, he signed the Employment Agreement and formally started work.

Less than three months later, following tensions and communication issues with colleagues, Mr King was dismissed. The employer relied on the 90‑day trial period and did not follow a formal dismissal process.

Mr King raised an unjustified dismissal personal grievance, arguing the trial period was invalid because he had already worked for the company before signing the agreement. The employer claimed the one day of cash work was as a contractor, and therefore Mr King had not previously been an employee.

The ERA agreed with Mr King.

It found that the paid day of work was ‘not independent contracting’. Mr King worked under the employer’s direction, at a set time and place, using the employer’s systems, for the employer’s client.

Because the Employment Relations Act allows a trial period only if the employee has not been previously employed by the employer, the Authority held that the 90‑day trial was invalid.

As a result, the employer could not rely on the 90 day trial period, and the dismissal was assessed under normal unjustified dismissal rules. The ERA found the dismissal unjustified and ordered the employer to pay:

$13,650 for lost wages

$15,000 for hurt and humiliation

We will be discussing 90 day trial periods in our free webinar next week. If you would like to register, please click here.