The Government and trade unions are bumping heads over the impact of the 90-day trial employment period.
Companies can dismiss an employee without the threat of a personal grievance case for unfair dismissal during their first 90 days.
The Government says it has no evidence the policy has been abused, but trade unions say they have proof that it has.
The Government expanded the trial period in April to include companies with more than 20 employees, saying it will make the labour market more flexible.
Despite predictions by the unions that the sky would fall in because of the changes, Labour Minister Kate Wilkinson, says the results have been positive.
Darien Fenton, Labour's spokesperson on labour issues, disputes this.
NZIER principal economist Bill Kaye-Blake says latest official figures appear to confirm the 90 day policy is encouraging the hiring of new personnel.
More on this can be heard on Insight on Sunday.
