The Maori Party says latest unemployment figures for Maori are a clear indication that the 90-day trial period for new employees has failed those it was supposed to help.
Statistics New Zealand figures issued on Thursday show that the unemployment rate for Maori is just over 15% and the number of Maori unemployed is 44,000.
The 90-day trial law came into effect for all employers in April 2011 to boost employer confidence and encourage them to take on more staff.
But Maori Party co-leader Tariana Turia says it is not working - particularly for young Maori who were already finding it hard to get jobs.
"It hasn't been able to overcome the discrimination that is practised in the employment sector. No employer who is discriminatory in their practices should be allowed to receive subsidies to employ people."
Mrs Turia said the Government needs to reassess its employment policies so that young people have hope in their future.
The 90-day trial allows employers to sack workers during their first three months on the job.