Receiving a personal grievance from an employee or ex-employee can be stressful and challenging, but understanding the correct process and your rights as an employer can help you navigate the situation effectively.
In New Zealand, employees and ex-employees can raise personal grievances for various reasons, including unjustified dismissal, disadvantage, discrimination, or harassment.
What are personal grievances?
A personal grievance is a formal complaint made by an employee or ex-employee against their employer, usually alleging unfair or unlawful treatment.
The most common personal grievances relate to unjustified dismissal or unjustified disadvantage.
- Unjustified dismissal occurs when an employee believes their employment has been terminated without a fair reason or proper process.
- Unjustified disadvantage arises when an employee claims they have been unfairly treated in a way that negatively impacts their employment conditions or ability to perform their role.
Employer’s obligations when receiving a personal grievance
When a grievance is raised, an employer’s primary obligation is to carefully consider the claim and respond appropriately. If the employee is still employed, or if the grievance includes an information request, the employer must respond promptly to comply with their legal requirements, including the duty of good faith.
Any response should be considered and well-prepared, as it may be used in proceedings before the Employment Relations Authority (ERA). Employers may wish to seek legal advice at this stage to ensure their response is accurate and aligns with their employment obligations.
Responding to a personal grievance
When responding to a grievance, employers should:
- Address any points they disagree with by either denying them or providing explanations.
- Present facts or evidence to dispute the allegations.
- Request further information from the employee or ex-employee if needed, such as evidence supporting their claims.
Information requests
Personal grievances often include requests for information from the employer. Under the Employment Relations Act and the Privacy Act, employees and ex-employees are entitled to access certain personal and employment-related information, such as information relating to them and time and wage records.
Employers should carefully assess these requests and respond within the relevant statutory timeframes. Failure to comply could lead to further claims.
Potential outcomes of a personal grievance
Personal grievances can be resolved in several ways, including negotiation (which may result in the employee deciding not to proceed with their claim), mediation, or, if necessary, a determination by the ERA.
Depending on the outcome, the employee may be awarded compensation or, in rare cases, reinstatement to their previous role.
While most grievances are resolved before reaching the ERA, employers should approach all communications with care, as they may later be used as evidence to support the employee’s claim.
Practical tips for defending a personal grievance
- Encourage Open Communication: Preventing grievances is often the best defence. Encourage employees to raise concerns during their employment and address these at the time to avoid escalation.
- Follow Fair Processes: Ensure that all employment processes, such as restructures or disciplinary actions, are fair, lawful, and well-documented. Seek professional guidance if needed and maintain detailed records to support your position if a grievance is raised.
- Understand Your Obligations: Familiarise yourself with your legal responsibilities to minimise risks and manage grievances effectively.
Conclusion
Understanding your responsibilities when managing personal grievances is crucial to protecting your business from legal risks. For tailored advice on managing this process, please contact our team.
About the Author
Zachary Pentecost is a Senior Associate for Edwards Sluiters and is our Employment Lawyer based in Christchurch. Zachary is well-regarded for his strategic approach to solving complex employment law matters.
His expertise spans both contentious and advisory areas of employment law, with a particular focus on helping clients navigate the complexities of workplace relationships, legal compliance, and conflict resolution.
