Employment Law FAQ NZ 2026 | Your Questions Answered

Q: What is a personal grievance and how do I raise one?

A personal grievance is a formal complaint by an employee against their employer under the Employment Relations Act 2000. Common grounds include unjustified dismissal, disadvantage, discrimination, harassment, or duress to join a union. You must raise a personal grievance within 90 days of the action occurring (or becoming aware of it). Notify your employer in writing, clearly stating it's a personal grievance and the grounds. You don't need to use those exact words, but must communicate you're raising a formal complaint.

Q: What is the 90-day trial period in NZ?

The 90-day trial period allows employers with fewer than 20 employees to dismiss new employees within the first 90 days without the employee being able to bring a personal grievance for unjustified dismissal. Key requirements: must be in the employment agreement before work starts, employee must be new to that employer, notice must still be given. Since 2019, only small businesses (under 20 employees) can use 90-day trials. Larger employers can use 'probationary periods' but must still follow fair dismissal processes.

Q: How much compensation can I get for unfair dismissal in NZ?

Compensation for unjustified dismissal in NZ typically includes: Lost wages (usually 3-6 months' salary, sometimes up to 12 months in serious cases), compensation for hurt and humiliation ($5,000-$25,000 typically, maximum around $40,000 in exceptional cases), and reimbursement of legal costs in some situations. The Employment Relations Authority considers factors like length of employment, employer's conduct, employee's contribution to the situation, and impact on the employee. Reinstatement is also possible but rarely ordered.

Q: What is constructive dismissal?

Constructive dismissal occurs when an employee resigns because the employer's conduct made it impossible or unreasonable to continue working. Examples include: significant unilateral changes to job duties, pay cuts without agreement, demotion, creating an intolerable work environment, or serious breaches of the employment agreement. To claim constructive dismissal, you must show the employer's actions were so serious that resignation was the only reasonable option. Don't resign impulsively - seek legal advice first.

Q: What are my rights during redundancy in NZ?

During redundancy in NZ, you have rights to: genuine consultation before final decisions (not just notification), consideration of alternatives like redeployment, a fair selection process if some roles remain, reasonable notice (per your agreement, usually 2-4 weeks), any redundancy compensation stated in your agreement. There's no statutory redundancy pay in NZ - it depends on your employment agreement. The redundancy must be genuine (the role itself must go, not just you). Employers cannot use redundancy as a cover for performance management.

Q: How does the Employment Relations Authority work?

The Employment Relations Authority (ERA) is New Zealand's first-tier employment disputes body. It investigates employment relationship problems using an inquisitorial approach (actively questioning parties rather than just hearing arguments). Process: file an application ($71.56 fee), mediation is usually required first, if unresolved the ERA holds an investigation meeting, then issues a written determination. The ERA is less formal than court, lawyers aren't required, and decisions typically take 3-6 months. Determinations can be challenged to the Employment Court.

Q: What is the difference between the ERA and Employment Court?

The Employment Relations Authority (ERA) is the first-tier body - more informal, investigative, and designed to resolve disputes quickly and cost-effectively. The Employment Court is the second tier - a formal court with judges, stricter evidence rules, and legal representation usually essential. ERA decisions can be challenged to the Employment Court within 28 days. The Court also handles injunctions, strikes/lockouts, and complex legal issues. Court cases are more expensive ($15,000-$50,000+) and take longer (6-18 months) than ERA matters ($5,000-$15,000, 3-6 months).

Q: Can I record conversations at work in NZ?

In NZ, you can legally record a conversation you're participating in without telling the other person (one-party consent). However, recording conversations you're not part of is illegal. While legal, covert recordings can damage trust and workplace relationships. The ERA and Employment Court may admit recordings as evidence but consider how they were obtained. Secret recordings might not be given much weight if they seem designed to entrap. Best practice: ask permission to record, or take detailed contemporaneous notes instead.

Q: What is the minimum notice period in NZ?

There's no statutory minimum notice period in NZ - it depends entirely on your employment agreement. Common notice periods: 1-2 weeks for entry-level roles, 2-4 weeks for most positions, 4-12 weeks for senior roles. If your agreement doesn't specify notice, 'reasonable notice' applies - typically 2-4 weeks depending on role seniority and industry norms. Both employer and employee must give notice unless there's serious misconduct (summary dismissal) or mutual agreement. Payment in lieu of notice is common.

Personal Grievances

What is a personal grievance and how do I raise one?

A personal grievance is a formal complaint by an employee against their employer under the Employment Relations Act 2000. Common grounds include:

Unjustified dismissal
Unjustified disadvantage
Discrimination
Sexual or racial harassment
Duress related to union membership

Important: You must raise a personal grievance within 90 days of the action occurring (or becoming aware of it). Notify your employer in writing, clearly stating it's a personal grievance and the grounds.

What is the 90-day trial period in NZ?

The 90-day trial period allows employers with fewer than 20 employees to dismiss new employees within the first 90 days without the employee being able to bring a personal grievance for unjustified dismissal.

Key requirements:

Must be in the employment agreement before work starts
Employee must be genuinely new to that employer
Notice must still be given as per the agreement

Since 2019, only small businesses (under 20 employees) can use 90-day trials. Larger employers can use "probationary periods" but must still follow fair dismissal processes.

Dismissal & Redundancy

What is unjustified dismissal in NZ?

Unjustified dismissal occurs when an employer terminates employment without a valid reason or without following a fair process. Under NZ law, the employer must have genuine reasons AND follow a fair procedure:

Investigate the matter properly
Give the employee a real opportunity to respond
Consider their response with an open mind
Make a decision a fair and reasonable employer could make

Common examples of unjustified dismissal: Dismissal without warning for minor issues, not following company procedures, or predetermined outcomes before hearing the employee's side.

How much compensation can I get for unfair dismissal in NZ?

Compensation for unjustified dismissal typically includes:

Lost wages	3-6 months' salary (up to 12 months in serious cases)
Hurt and humiliation	$5,000-$25,000 typically (max ~$40,000 exceptional cases)
Legal costs	Reimbursement possible in some cases

The ERA considers: length of employment, employer's conduct, employee's contribution to the situation, and impact on the employee. Reinstatement is also possible but rarely ordered.

What is constructive dismissal?

Constructive dismissal occurs when an employee resigns because the employer's conduct made it impossible or unreasonable to continue working. Examples include:

Significant unilateral changes to job duties
Pay cuts without agreement
Demotion without justification
Creating an intolerable work environment
Serious breaches of the employment agreement

Don't resign impulsively - seek legal advice first. To claim constructive dismissal, you must show the employer's actions were so serious that resignation was the only reasonable option.

What are my rights during redundancy in NZ?

During redundancy, you have rights to:

Genuine consultation before final decisions (not just notification)
Consideration of alternatives like redeployment to other roles
Fair selection process if some roles remain
Reasonable notice (per your agreement, usually 2-4 weeks)
Any redundancy compensation stated in your agreement

Important: There's no statutory redundancy pay in NZ - it depends entirely on your employment agreement. The redundancy must be genuine (the role itself must go, not just you). Employers cannot use redundancy as a cover for performance management.

Dispute Resolution

How does the Employment Relations Authority work?

The Employment Relations Authority (ERA) is New Zealand's first-tier employment disputes body. It uses an inquisitorial approach - actively questioning parties rather than just hearing arguments.

The ERA process:

File an application ($71.56 fee)
Mediation is usually required first
If unresolved, the ERA holds an investigation meeting
Written determination is issued

The ERA is less formal than court, lawyers aren't required, and decisions typically take 3-6 months. Determinations can be challenged to the Employment Court within 28 days.

What is the difference between the ERA and Employment Court?

Aspect	ERA	Employment Court
Formality	Informal, investigative	Formal court proceedings
Lawyers	Not required	Usually essential
Typical cost	$5,000-$15,000	$15,000-$50,000+
Timeframe	3-6 months	6-18 months
When used	First tier for most disputes	Challenges to ERA, injunctions, complex issues

ERA decisions can be challenged to the Employment Court within 28 days. The Court also handles urgent injunctions, strikes/lockouts, and complex legal questions.

What is mediation in employment disputes?

Mediation is a free, confidential service provided by the Ministry of Business, Innovation and Employment (MBIE) to resolve employment disputes. A neutral mediator helps parties reach agreement - they don't decide who's right or wrong.

Usually required before the ERA will hear your case
Success rate is approximately 80%
Sessions typically last half a day
You can bring a support person or representative
Settlements reached are legally binding if signed

Mediation is often the fastest, cheapest way to resolve employment disputes. If mediation fails, you can proceed to the ERA.

Workplace Rights

What is the minimum notice period in NZ?

There's no statutory minimum notice period in NZ - it depends entirely on your employment agreement.

Role Type	Common Notice Period
Entry-level roles	1-2 weeks
Most positions	2-4 weeks
Senior roles	4-12 weeks

If your agreement doesn't specify notice, "reasonable notice" applies - typically 2-4 weeks depending on role seniority. Both employer and employee must give notice unless there's serious misconduct or mutual agreement.

What are my rights regarding breaks and rest periods?

Under NZ law (Employment Relations Act 2000), you're entitled to:

Rest breaks (paid):

10 minutes if working 2-4 hours
2 x 10 minutes if working 4-6 hours

Meal breaks (unpaid):

30 minutes if working more than 6 hours

Breaks must be taken at times allowing employees to rest and eat. If work prevents breaks, they must be compensated. You can agree to different arrangements if they provide "adequate" rest and refreshment.

How does sick leave work in NZ?

After 6 months of continuous employment, NZ employees get 10 days of sick leave per year (increased from 5 days in 2021).

Unused sick leave carries over up to 20 days maximum
Use for your own illness/injury OR to care for a dependent
Employers can require a medical certificate after 3 consecutive days
Some employers offer more generous provisions

A "dependent" includes your spouse, child, or anyone who depends on you for care.

Can I record conversations at work in NZ?

In NZ, you can legally record a conversation you're participating in without telling the other person (one-party consent). However, recording conversations you're not part of is illegal.

Important considerations:

While legal, covert recordings can damage trust and workplace relationships
The ERA and Employment Court may admit recordings but consider how they were obtained
Secret recordings might not be given much weight if they seem designed to entrap

Best practice: Ask permission to record, or take detailed contemporaneous notes instead.

Bullying & Harassment

What is workplace bullying and harassment in NZ?

Workplace bullying is repeated, unreasonable behaviour directed at an employee that creates a risk to health and safety. Examples include:

Verbal abuse or aggressive communication
Public humiliation or constant criticism
Social exclusion or isolation
Setting impossible deadlines or undermining work
Withholding information needed to do your job

Harassment includes sexual harassment (unwelcome sexual behaviour) and racial harassment.

If you're experiencing bullying/harassment:

Document all incidents with dates, times, and witnesses
Report to your manager or HR
Use internal complaints processes
If unresolved, you may have grounds for a personal grievance

Employers have a legal duty to prevent and address bullying and harassment in the workplace.

Getting Legal Help

Do I need a lawyer for an employment dispute?

You don't legally need a lawyer - the ERA is designed for self-representation. However, lawyers help when:

The case is legally or factually complex
Significant money is at stake ($10,000+)
Your employer has legal representation
You're unfamiliar with employment law
You're too stressed to represent yourself effectively

Alternatives to lawyers:

Employment advocates	$150-250/hour (often cheaper than lawyers)
Union representatives	Free if you're a member
Community Law Centres	Free advice and assistance
Employment lawyers	$300-500+/hour

Many employment lawyers offer free initial consultations to assess your case.

Quick Cost & Timeline Summary

Employment Dispute Costs at a Glance

Stage	Cost	Timeline
Mediation	Free	4-8 weeks to schedule
ERA application	$71.56 filing fee	3-6 months total
ERA with lawyer	$5,000-$15,000	3-6 months
Employment Court	$15,000-$50,000+	6-18 months
Complex/contested	$30,000-$100,000+	12-24 months

Employment Law FAQ NZ 2026: Your Questions Answered