Personal grievance

The grounds and the clock

The main grievance types are unjustified dismissal, unjustified disadvantage (an action short of dismissal that harms the employee's position), discrimination, and sexual or racial harassment. The employee must raise the grievance with the employer within 90 days, extended to 12 months for sexual harassment claims. Raising it starts a resolution path that usually runs through mediation before reaching the Employment Relations Authority.

The justification test

Whether a dismissal or action was justified turns on a statutory test: whether the employer's actions, and how the employer acted, were what a fair and reasonable employer could have done in the circumstances. The test examines both substance (was there a genuine reason) and process (was the employee told the concerns, shown the evidence, given a real chance to respond before a decision was made). New Zealand authorities are notably unforgiving of predetermined outcomes wearing consultation's clothing.

The 2026 high-income threshold

Since the Employment Relations Amendment Act 2026 (in force 21 February 2026), employees earning above NZ$200,000 in total annual remuneration can no longer bring unjustified dismissal grievances. The exclusion applies immediately to new employment agreements and to existing ones after a 12-month transition, and the threshold is updated annually. The same Act restricted remedies where an employee's serious misconduct contributed to the situation. Other grievance grounds, discrimination and harassment included, remain available at every income level.

Remedies and the comparison with Australia

Remedies include reinstatement, reimbursement of lost wages, and compensation for hurt and humiliation, and there is no Australian-style cap tied to weeks of pay. Structurally, the personal grievance regime covers ground that Australia splits across unfair dismissal and general protections: one door, a broader justification test, and a 90-day window instead of 21 days. For employers on both sides of the Tasman, the safe common denominator is identical: genuine reasons, documented process, decisions made after the employee's response rather than before.