Guide · 12 min read
90-day personal grievance — the New Zealand employment walkthrough
New Zealand employees who believe they have been unjustifiably dismissed or disadvantaged at work must raise a personal grievance within 90 days of when the action occurred — or the action came to their attention. This guide walks through the 90-day rule, the four grievance grounds under section 103 of the Employment Relations Act 2000, the mediation-Authority-Employment-Court pathway, and what to do if the 90-day window has already passed.
The 90-day rule — section 114 of the Employment Relations Act 2000
Under section 114 of the Employment Relations Act 2000, an employee who believes they have a personal grievance against their employer must raise that grievance with the employer within 90 days of (a) the date on which the action alleged to amount to a personal grievance occurred, or (b) the date on which the action came to the employee's notice — whichever is the later. "Raising" the grievance means putting the employer on notice in writing or orally that you believe you have a grievance — it does not mean filing anything with a Court or the Employment Relations Authority. The 90-day clock starts on the action date (or notice date), so for an unjustified-dismissal grievance the clock typically starts on the date the employment ended. If the 90 days expires without the grievance being raised, the right is lost — though there is a statutory mechanism (section 115) to apply for leave to raise out of time in "exceptional circumstances", which the Authority interprets narrowly.
The four grievance grounds — section 103 of the Employment Relations Act 2000
Section 103 of the Act sets out the grounds for a personal grievance. An employee can raise a grievance if they have been: (a) unjustifiably dismissed — the dismissal was not what a fair and reasonable employer could have done in all the circumstances, judged against the section 103A standard. (b) Unjustifiably disadvantaged — the employer's action (e.g. demotion, transfer, unilateral pay cut, unreasonable performance management) was not what a fair and reasonable employer could have done. (c) Discrimination on one of the prohibited grounds in the Human Rights Act 1993 (sex, marital status, religious belief, ethical belief, colour, race, ethnic or national origin, disability, age, political opinion, employment status, family status, sexual orientation). (d) Sexual or racial harassment, or duress in relation to membership of a union or employees' organisation. Each ground has its own evidential test — unjustified dismissal turns on the section 103A "fair and reasonable employer" test; discrimination requires showing the prohibited ground was a material factor in the employer's decision; harassment requires the conduct to be unwelcome and to have detrimental effect on employment.
Section 103A — what "fair and reasonable employer" means
Section 103A of the Act is the heart of the unjustified-dismissal and unjustified-disadvantage tests. The Authority and the Employment Court must determine whether the employer's actions, and the way the employer carried them out, were what a fair and reasonable employer could have done in all the circumstances at the time. Specifically, the test asks whether: (a) the employer sufficiently investigated the allegations against the employee before deciding, (b) the employer raised the concerns with the employee before dismissal, (c) the employer gave the employee a reasonable opportunity to respond, and (d) the employer genuinely considered the employee's explanation. These four factors are the procedural half of the test — substantive fairness (did the employer have a good reason to act?) is the other half. A dismissal can be substantively justified but procedurally unfair and still amount to an unjustified dismissal — and vice versa.
Mediation first — the Employment New Zealand pathway
Once a grievance is raised, the next step is almost always mediation through Employment New Zealand (a Ministry of Business, Innovation and Employment service). Mediation is free for both parties and confidential. The mediator does not decide the grievance — they help the parties reach a recorded settlement that is binding under section 149 of the Act ("section 149 record of settlement"). A signed section 149 settlement cannot be reopened by either party except in narrow circumstances. Most personal grievances in New Zealand settle at mediation — the Authority publishes annual statistics showing roughly 70–75% of mediated grievances settle without progressing further. Book mediation at employment.govt.nz/resolving-problems/steps-to-resolve/mediation/.
Authority and Court — when mediation does not settle
If mediation does not produce a settlement, the next step is to file an application with the Employment Relations Authority — an investigative body (not a Court) that decides personal grievances and other employment disputes. The filing fee is currently NZ$71.56 inc GST (2024) and the Authority must hold the investigation in private unless both parties agree otherwise. Authority decisions are published at forms.justice.govt.nz/jdo. Either party can challenge an Authority determination by filing a statement of claim in the Employment Court within 28 days — the Employment Court is a formal Court of record, hears matters in public, and decisions are subject to further appeal to the Court of Appeal and then the Supreme Court on points of law. Most grievances do not progress past the Authority — only roughly 5–8% of Authority determinations are challenged to the Employment Court.
Remedies available — section 123 of the Employment Relations Act 2000
Section 123 of the Act lists the remedies the Authority and the Employment Court can order for a successful personal grievance: (a) reimbursement of lost wages or other money (typically capped at 3 months' lost wages and reduced by any contributory conduct of the employee), (b) compensation for humiliation, loss of dignity, and injury to feelings (a discretionary amount — the current range in Authority awards sits roughly NZ$5,000–NZ$25,000 with awards above NZ$25,000 reserved for the most serious cases), (c) reinstatement to the previous position (rarely ordered against the employer's wishes but available where the employment relationship can be restored), and (d) recommendations to the employer about future conduct. Section 124 allows the Authority to reduce the remedy where the employee's own conduct contributed to the situation — a finding of "contributory conduct" can cut the lost-wages and compensation amounts by 25%, 50%, or more depending on the seriousness.
Out-of-time grievances — section 115 exceptional circumstances
If the 90-day window has expired, the only path to a grievance is to apply to the Authority for leave to raise the grievance out of time under section 115 of the Act. The Authority must be satisfied that exceptional circumstances justified the delay. The Authority interprets "exceptional circumstances" narrowly: serious illness, a representative's failure to act, employer concealment, and (in some cases) ignorance of the right to raise a grievance can qualify; routine delay, normal busy-ness, or "I was thinking about it" do not. The Authority also considers prejudice to the employer — the longer the delay, the harder it is to obtain leave. If the 90 days has only just expired and the delay was due to a genuine reason, file the section 115 application without waiting; if 12+ months have passed, the prospect of leave is much weaker.
When to involve a lawyer
Personal grievances are one of the areas where a lawyer adds the most value relative to cost. The 90-day rule is unforgiving — a missed deadline is hard to recover. Many employment lawyers offer a free or low-cost initial consultation to assess whether you have a grievance and whether it is in time. Employment lawyers typically charge NZ$300–NZ$600 per hour for personal grievance work, and a straightforward grievance from "raise" to "mediated settlement" often takes 4–10 hours of lawyer time. Some employment lawyers offer conditional fee arrangements ("no win, no fee") for personal grievances where the prospects are strong — these are regulated by sections 333–336 of the Lawyers and Conveyancers Act 2006 and must be in a written conditional fee agreement that complies with the disclosure requirements. Legal Aid for employment matters is limited — civil Legal Aid is available in principle but the income thresholds and merits test exclude many grievances. The Employment Relations Authority filing fee (NZ$71.56) is not waived for Legal Aid recipients.
Frequently asked questions
When does the 90 days start running?
The 90 days under section 114 of the Employment Relations Act 2000 starts from the later of (a) the date the action that amounts to a personal grievance occurred, or (b) the date the action came to your notice. For an unjustified-dismissal grievance, the clock typically starts on the date employment ended. For an unjustified-disadvantage grievance (e.g. demotion, unilateral pay cut), the clock starts on the date the employer's action took effect. For discrimination or harassment grievances based on a course of conduct, the clock can start on the last incident in the course. If you only learned about the action later (e.g. the employer concealed the reason for dismissal), the clock starts on the date you learned — this is the "came to your notice" branch.
How do I "raise" a grievance?
Raising a grievance under section 114 means putting the employer on notice that you believe you have a grievance. It does not require any specific form. A clear, dated written communication (email, letter) stating the action you believe was unjustified and that you wish to raise a personal grievance is the most evidentially safe form. Verbal notice can satisfy section 114 but is harder to prove if the employer denies you raised it. The grievance must be raised with the employer — not with Employment New Zealand or the Authority. Mediation and Authority filing come after the grievance is raised, not as a substitute.
Is mediation through Employment New Zealand free?
Yes. Mediation services provided by Employment New Zealand mediators are free for both parties. Either party can request mediation; if one requests, the other is usually expected to attend. Mediation is confidential and the mediator does not decide the dispute — the mediator helps the parties reach a settlement that, if signed under section 149 of the Employment Relations Act 2000, is binding and not reopenable except in narrow circumstances. Most personal grievances in New Zealand settle at this stage.
What does a successful unjustified dismissal claim pay?
Under section 123 of the Employment Relations Act 2000, an Authority that finds an unjustified dismissal can order (a) reimbursement of lost wages typically capped at 3 months and reduced by any contributory conduct of the employee, (b) compensation for humiliation, loss of dignity, and injury to feelings — Authority awards currently range roughly NZ$5,000 to NZ$25,000 with awards above NZ$25,000 reserved for the most serious cases, and (c) reinstatement to the previous position (rarely ordered against the employer's wishes). Section 124 allows the Authority to reduce remedies where the employee's own conduct contributed to the situation — contributory conduct findings of 25%, 50%, or higher are common.
Can I use Legal Aid for an employment grievance?
Civil Legal Aid is available in principle for employment grievances but the income thresholds and merits test exclude many applications. The Legal Services Commissioner assesses each application on income, assets, the merit of the case, and the likely amount at stake — small grievances may not pass the merits test even if the applicant is income-eligible. The Employment Relations Authority filing fee (NZ$71.56 inc GST as at 2024) is not waived for Legal Aid recipients. Many employment lawyers offer free or low-cost initial assessments to evaluate whether the grievance has merit and whether you qualify for Legal Aid.
What if the 90 days has already passed?
You must apply to the Employment Relations Authority for leave to raise the grievance out of time under section 115 of the Employment Relations Act 2000. The Authority must be satisfied there are exceptional circumstances — serious illness, a representative's failure to act, employer concealment, and in some cases ignorance of the right to raise the grievance can qualify. Routine delay does not. The Authority also considers the degree of prejudice to the employer caused by the delay. File the section 115 application without waiting if the 90-day window has only recently expired and you have a genuine reason; the longer the delay, the harder it is to obtain leave.
Primary sources cited in this guide
- Employment Relations Act 2000 (legislation.govt.nz)
- ERA s103 — grounds for a personal grievance
- ERA s103A — fair and reasonable employer test
- ERA s114 — 90-day rule
- ERA s115 — leave to raise out of time
- ERA s123 — remedies for personal grievance
- Employment New Zealand — mediation
- Employment Relations Authority — file a claim
- Human Rights Act 1993 — prohibited grounds of discrimination
Related
Other guides