Archive for category: Employers

While this article is written to share information with employers, much of our time is also spent supporting both employees through grievances, unfair dismissals and related processes.

We are employment law consultants, not lawyers, and we have experience helping either side navigate practical next steps. If you’d like to talk about a workplace grievance, unfair dismissal or something similar, call us on 0800 DISMISSED. We work on a no-win no no-fee basis and will give you straight, practical advice in relation to your employment concerns.

Workplace disputes are rising. That matters to every employer and employee in New Zealand.

In 2024, the Employment Relations Authority recorded a 22 per cent increase in employment relationship problems lodged compared with 2023. That rise was relatively uniform across ERA offices, and it is one of the clearest signs that more workers are bringing issues to authorities to seek a formal resolution. Personal grievances remain the most common type of application, followed by breaches of legislation and claims for unpaid wages or arrears. Era

This is not an academic point. More disputes mean more investigations.  More disputes, more hearings.   And more disputes mean more time and cost for both employers and employees. Below, I explain why disputes are increasing, examine two recent cases that show where risk sits, and give high-level but practical steps you can take to reduce exposure.

Important. Nothing in this article is a substitute for tailored legal advice. If you have a live employment issue, talk to an employment law specialist or an employment advocate.

Why disputes are increasing in NZ

Several practical factors keep appearing in ERA data and commentary.

1. Process failures. Managers and/or business owners sometimes skip the fair process. Meetings go undocumented. Investigations lack evidence. Bottomline.  Tribunals decide on what actually happened, not on recollections or tidy narratives put together afterwards.
2. Payroll transparency. Employees can see payslips and leave balances easily. Errors are found sooner. The quicker an employer fixes payroll mistakes, the less likely a claim will follow.
3. Labour hire complexity.  The controlling third party risk.  Where a host organisation sets hours or supervises staff, it may be joined as a controlling third party to a personal grievance. That expands the field of potential defendants and makes disputes more complex. Legislation New Zealand
4. Informal arrangements harden. Hybrid work, trial arrangements and off-the-cuff promises calcify into disputes if they are not put into writing.

Minimise your risks.  Address those weaknesses highlighted above and you remove a large proportion of the problems that end up before the ERA.

The ERA trend: process, payroll and clarity

The ERA Annual Report for 2024 sets out the numbers and the pattern. The 22 percent rise in employment relationship problems was felt across regions, and personal grievances remain the top category. That points to recurring operational failures rather than a single headline issue. Insufficient records, inconsistent processes and unclear control arrangements keep creating trouble. Era

Case 1. Migrant worker enforcement: just over NZD 40,000 in penalties and repayments, Hamilton

A recent prosecution in Hamilton brought the risks into sharp focus. A Hamilton business operator pleaded guilty to immigration and employment offences. The court imposed an NZD $13,000 fine and ordered $27,660 repaid to two migrant workers.  That’s a combined penalty and restitution of just over NZD 40,000.

Immigration New Zealand and national media covered the outcome.

This case shows that regulators will use a mix of fines and repayment orders to deter exploitative or careless conduct in migrant recruitment and employment. Immigration New Zealand

Why this case matters for you

• If you hire from overseas, check every step. That includes the job offer, AEWV verification (Accredited Employer Work Visa), accommodation arrangements and any agent relationships.
• Do not charge or pass recruitment fees to workers. Doing so can breach employment law and immigration rules.
• Keep receipts, written contracts and visa checks. Documentation is your first line of defence, and it shows you did your due diligence.
• Do not give loans to migrant staff, do not pay anything in cash and maintain accurate employment records signed off by the employees.

Case 2. Five unions challenge pay equity changes in the High Court

The NZNO, PSA, PPTA, TEU and NZEI Te Riu Roa have filed proceedings in the High Court seeking a declaration that the amended Equal Pay Act 1972 is inconsistent with the New Zealand Bill of Rights Act 1990.

Five unions have launched High Court proceedings challenging recent pay equity law changes. The unions named include the New Zealand Nurses Organisation, the Public Service Association, the Post Primary Teachers Association, the Tertiary Education Union and NZEI Te Riu Roa. The unions say the amendments cancelled 33 ongoing claims and introduced procedural hurdles that undermine long-running cases.  Cases related to female-dominated roles. This case could certainly challenge and reshape how pay equity is handled if the court finds the changes unlawful. PSA

What employers should do

• Treat pay equity as an active issue rather than a compliance box to tick.
• Keep clear records of how pay decisions were made and how job comparisons were carried out.
• Prepare to consult with staff if changes affect roles that had historic comparators.

Case 3 Labour hire and controlling third-party risk – Triangular Employment Relationships.

Labour hire arrangements offer operational flexibility but broaden legal exposure. If a host organisation controls day-to-day duties, sets shifts or supervises workers, ERA procedures allow the host to be joined as a controlling third party under the Employment Relations Act. That can mean more respondents and a more complex dispute to resolve. NZLii  / Triangular Employment Relationships

Practical action.

Map control. Note who supervises, who sets shifts and note who manages performance. Record these responsibilities in contracts and operational documents. If the host must supervise, be clear and narrow about the limits of that supervision.  It is all about documentation, documentation and more documentation.

Practical steps you can implement immediately

1. Document early and often. A short email recording a meeting and its outcome is powerful evidence.
2. Audit payroll immediately. Check payslips, leave balances and holiday pay calculations. Fix anomalies before they compound.
3. Map labour hire control. Write down who sets shifts, who disciplines and who manages performance.
4. Formalise flexible work. Put hybrid or trial arrangements into short written agreements with a review date.
5. Vet migrant recruitment. Keep visa screenshots, agent agreements and receipts. Do not accept job-related fees from workers.

Small consistent employment law related actions reduce risk far faster than a major remediation once a dispute lands on your desk.

If a grievance lands, a short playbook

1. Acknowledge receipt in writing straight away.
2. Arrange a meeting promptly to hear the person’s concerns.
3. Gather records, including emails, timesheets and meeting notes.
4. Consider mediation early. Many disputes settle there. Consider private mediation, we provide this service.
5. If you investigate, do it fairly. Give the person a chance to respond and record the outcome.

Tribunals care about fairness as much as facts. Credibility, shown by process and records, matters.

Prevention beats cure

The ERA’s 22 per cent rise is both a warning and an opportunity. It highlights where workplaces repeatedly fail: process, payroll and clarity of control. Fix those things, and you will cut your exposure quickly. Consistency, not perfection, is the best form of insurance.

• Employment Relations Authority, Annual Report 2024. Era
• Immigration New Zealand, Hamilton man to repay over 40,000 dollars for immigration

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FAQs

Q1. What does the 22 per cent increase mean?

It refers to the total employment relationship problems lodged with the ERA in 2024, compared with 2023, as reported in the ERA Annual Report 2024. Era

Q2. Could an employer face both civil and criminal penalties for migrant exploitation?

Yes. The Hamilton case shows a business can be fined and ordered to repay workers. Regulatory or criminal sanctions can follow where laws are breached. Immigration New Zealand

Q3. Who are the five unions bringing the High Court challenge?

The unions are the New Zealand Nurses Organisation, the Public Service Association, the Post Primary Teachers Association, the Tertiary Education Union and NZEI Te Riu Roa. PSA

Q4. How do I reduce third party risk in labour hire set ups?

Clarify and document who supervises, who sets shifts and who manages performance. Keep decision-making with the actual employer where possible and map responsibilities in writing. NZLii

If you have questions, need support, or want practical employment law advice, get in touch. We work on a no-win no no-fee basis and will help you figure out the next steps.

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• New Zealand Nurses Organisation Tōpūtanga Tapuhi Kaitiaki o Aotearoa
• Public Service Association Te Pukenga Here Tikanga Mahi
• Post-Primary Teachers Association Te Wehengarua
• Te Hautū Kahurangi o Aotearoa | New Zealand Tertiary Education Union
• NZEI Te Riu Roa