The personal grievance process in NZ: an employer’s guide

What is a personal grievance?

A personal grievance is a claim under section 103 of the Employment Relations Act 2000 that an employee has been treated unfairly. The most common grounds are unjustified dismissal and unjustified disadvantage, where an employer’s action causes the employee real harm to their employment.

Other grounds include discrimination, sexual or racial harassment, duress over union membership, and disadvantage from a health and safety issue. An employee does not need to have resigned or been dismissed to raise a grievance.

The 90-day time limit

Under section 114, an employee normally has 90 days from the date of the action (or from when they became aware of it) to raise a personal grievance with their employer. After 90 days, they generally need the employer’s consent or the Authority’s leave, which is only granted in exceptional circumstances.

Raising a grievance simply means notifying the employer of the concern. It does not have to be in any particular form, though it is usually in writing.

How employers should respond

How you respond in the first few days matters. A calm, good-faith response often resolves a grievance before it escalates.

• Acknowledge the grievance promptly and in writing, without admitting or denying liability.
• Get advice early, before you respond in substance, so your reply does not create new problems.
• Gather the relevant documents: the employment agreement, correspondence, notes and any process records.
• Consider whether the concern has merit. Sometimes the fair, cheaper outcome is to put something right.
• Offer to resolve the issue directly or through mediation.

Mediation and the Employment Relations Authority

Most grievances are resolved at mediation, a free, confidential service provided by the Ministry of Business, Innovation and Employment. Mediation is informal and without prejudice, and any settlement can be made final and binding when signed off by a mediator under section 149.

If mediation does not resolve the matter, either party can apply to the Employment Relations Authority, which investigates and issues a binding determination. The Authority focuses on the real substance of the dispute rather than legal technicalities.

Remedies, and how the 2026 changes affect them

If a grievance succeeds, the Authority can order remedies including reinstatement, reimbursement of lost wages, and compensation for humiliation, loss of dignity and injury to feelings under section 123.

From 21 February 2026, the Employment Relations Amendment Act 2026 strengthened the role of employee conduct. Where an employee’s own behaviour contributed to the situation, remedies can now be reduced by up to 100%, and serious misconduct that contributed can remove remedies altogether. Fair process by the employer still matters, but an employee’s conduct can significantly reduce what they recover.