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An employee grievance is rarely just about the thing the employee says it is about. Behind the formal complaint is usually a person who has felt unheard, disrespected or treated unfairly. How the manager responds in those first moments matters more than most realise.

Grievances that are handled well can actually strengthen trust in a workplace. Grievances that are mishandled, ignored or escalated unnecessarily tend to become expensive and time-consuming. The difference usually comes down to how human the process feels; not just whether it followed the right steps.

We created this guide as a practical resource for managers and business owners who want to understand how to resolve a grievance well, from the moment it lands on your desk to the point where everyone can move forward.

As always, this isn’t legal advice, so we’d highly recommend you seek independent legal counsel in these instances.

Download the guide by filling in the form on the right. 

The information in this article is current as at 28 May 2026 and has been prepared by 91±¬ÁÏ Pty Ltd (ABN 11 160 047 709) and its affiliates (91±¬ÁÏ). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. Some information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. 91±¬ÁÏ does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this article.

What is a personal grievance?

A personal grievance is a formal legal claim an employee can raise against their employer under the . It’s different from a workplace complaint, which is an informal concern raised directly with a manager or HR. A personal grievance triggers specific legal obligations and timeframes, and can ultimately be heard by the Employment Relations Authority.

Employees most commonly raise personal grievances on grounds including:

• Unjustified dismissal — the most frequent claim, arising when an employee believes their termination was not substantively or procedurally justified.
• Unjustified disadvantage — where an employer’s actions have put the employee at a disadvantage without good reason.
• Discrimination — based on grounds such as sex, age, ethnicity, religion or disability.
• Sexual harassment — unwanted sexual behaviour that is repeated or serious enough to have a detrimental effect.
• Racial harassment — behaviour that is hostile or offensive on racial grounds.
• Duress in relation to union membership — pressure applied to an employee regarding whether they join or leave a union.

Why grievances happen and what’s really behind them

Most employers are surprised when a grievance lands. In many cases, the triggering incident, such as a disciplinary meeting, a redundancy or a performance warning, is not the real source of the problem.

Grievances are often the endpoint of something that started much earlier. 

An employee who feels genuinely respected and fairly treated is far less likely to reach for a formal process, even when things go wrong. The ones that escalate are typically built on a longer history: a manager who communicates badly, a culture where people don’t feel heard or a pattern of small decisions that collectively signal to an employee that they don’t matter.

Management style plays a significant role. Inconsistent treatment, closed-door decision-making or a habit of raising performance concerns only when things have reached a crisis point all create conditions where grievances become more likely. When employees don’t have a clear channel to raise concerns informally, the formal one becomes the only option.

That’s why small issues are worth addressing early. A complaint left unacknowledged compounds. By the time a formal grievance is raised, what might have been resolved with a direct conversation has often become entrenched.

Your legal obligations as an employer

The is the primary legislation governing personal grievances in New Zealand. It sets out the rights of employees and the obligations of employers throughout the grievance process. Employers need to understand the key provisions, not just as a compliance exercise but because failing to follow them is one of the most common reasons employers lose cases.

The 90-day rule and the 12-month exception

Under , employees generally have 90 days from the date of the event to raise a personal grievance with their employer. After that window closes, the claim is typically out of time.

The exception is sexual harassment. Employees have 12 months to raise a sexual harassment grievance. This recognises the particular complexity and sensitivity around these claims and the additional barriers employees often face in coming forward.

Your duty of good faith

Good faith is not just a general principle; it’s a legal requirement. The places an active duty of good faith on both parties throughout the employment relationship, including during a grievance process. 

In practice, this means being honest, transparent and responsive. It means not misleading your employee about what’s happening or why, and not withholding information that’s relevant to their situation.

The 14-day response window

Once an employee raises a personal grievance, it’s best practice to acknowledge receipt and provide a more formal response in 14 days. This doesn’t mean you need to resolve it in 14 days but you should acknowledge it and indicate how you intend to deal with it. Failing to respond can be taken into account if the matter proceeds further.

What to do when an employee raises a grievance

Don’t let a grievance claim linger too long. How you respond in the first 24 to 48 hours matters more than most employers realise.

Receive the complaint without making things worse

Your immediate response sets the tone. Avoid becoming defensive, dismissive or reactive. Even if you disagree with every aspect of what’s been raised, this isn’t the moment to say so. Acknowledge that the employee has raised something formally and confirm that you take it seriously. Don’t make promises, speculate about outcomes or involve people who don’t need to know about it yet.

Take it seriously, even when you disagree

You can believe an allegation is unfounded and still be required to investigate it properly. The law doesn’t ask whether you think the grievance has merit. It asks whether you followed a fair process, regardless of your view. Employers who skip proper process because they’re confident they’re in the right are the ones who most often find themselves on the wrong end of an ERA determination.

Keep it confidential

Confidentiality protects everyone. Discuss the matter only with those who are directly involved in managing or investigating it. Talking about it more broadly can give rise to further claims.

The investigation process

A fair investigation is the foundation of a defensible outcome. Here’s some of the .

Gather the facts before forming a view

Start by identifying what information you actually need. What happened, when, who was involved and what records exist? Gather evidence like emails, meeting notes, timesheets and performance records, before conducting any interviews. This reduces the risk that conversations become contaminated by partial information.

Talk to the people involved and do it fairly

Interview the employee who raised the grievance and anyone who has relevant information. Give the person against whom the grievance is directed a genuine opportunity to respond to the specific concerns raised. They’re also entitled to have a support person present and you should tell them so.

Stay neutral in how you conduct interviews. The questions you ask and the tone you take signal whether this is a genuine fact-finding exercise or a predetermined one.

Keep records that protect everyone

Document as you go. Keep notes of interviews, retain any written communications and record the steps you took and why. If the matter ever proceeds to the ERA, the will significantly affect how your process is assessed. 

Employers who can show a clear, consistent and well-documented process are in a much stronger position than those who are reconstructing events from memory months later.

Resolving it early 

Most grievances that reach the Employment Relations Authority could have been resolved before getting there. Early resolution is almost always better for all parties.

Have an honest conversation before it escalates

Once the facts are clear, a direct conversation with the employee about what happened and how it can be addressed is often enough. This doesn’t mean capitulating or admitting fault where there is none. It means being willing to engage genuinely with what the employee experienced and what they’re looking for. Sometimes an acknowledgement, an apology or a change in process is enough to close the matter.

What mediation looks like in practice

If a direct conversation doesn’t resolve things, mediation is the next step before formal proceedings. is free, confidential and provided by accredited mediators. The mediator doesn’t decide who’s right; instead they help both parties reach a settlement they can agree on. Most mediations result in a resolution and settlements reached through mediation are binding.

Reach an agreement both sides can live with

A settlement doesn’t have to mean a large payout. Many are resolved with a modest payment, a reference, changes to a process or simply a mutual acknowledgement of what went wrong. The key is that both parties leave with something they can accept. That’s a better outcome than months of legal process and a determination that satisfies no one.

When it goes to the Employment Relations Authority

If mediation doesn’t resolve the matter, the employee can lodge a claim with the. The ERA is an investigative body, not a court. It gathers information, considers the evidence and makes a determination. The process is less formal than litigation but still legally significant.

What the ERA process involves

Both parties will be asked to file written statements of their position, provide evidence and potentially attend a hearing. ERA members can question witnesses directly and are not bound by strict rules of evidence. The process typically takes several months from lodgement to determination, though complex matters can take longer.

Possible outcomes

If the ERA finds in favour of the employee, it can order:

• Reinstatement — returning the employee to their role, though this is relatively rare in practice.
• Compensation for lost wages — calculated based on what the employee would have earned.
• Compensation for humiliation, loss of dignity and injury to feelings — an award that can be significant depending on the circumstances.
• Penalties — for serious breaches of good faith or legal obligations.

The reputational cost beyond the financial one

ERA determinations are publicly available. They’re searchable, indexed and increasingly referenced by prospective employees and other employers. The reputational impact of a detailed public finding against your business can outlast the financial cost of the case itself. This is a dimension of risk that doesn’t always factor into early decisions about how to handle a grievance.

How to reduce the risk of grievances in the first place

No workplace is completely insulated from personal grievances but most employers who face them repeatedly share common patterns. Most of those patterns are addressable.

Build a workplace where issues surface early

The best early warning system is a culture where people feel safe raising concerns informally. That requires managers who respond to concerns constructively and a genuine expectation from leadership that problems are flagged early. Regular one-on-ones, team check-ins and anonymous feedback mechanisms all help create channels for concerns to surface before they calcify into grievances.

Clear documentation and employment agreements

Every employee should have a written employment agreement that complies with the and accurately reflects their role and conditions. Beyond that, keep documentation current: job descriptions, performance expectations, any verbal agreements made during employment. When disputes arise, clear records mean a more defensible position.

Train your managers to handle difficult conversations

Most grievances involve a manager doing something that a more skilled conversation could have prevented. Managers need practical training in how to raise performance concerns early, how to conduct a disciplinary process fairly and how to have the kinds of direct, honest conversations that most people find uncomfortable. Investment in management capability is the single most effective risk management tool available to employers and it’s often the most overlooked.

For more information, download our guide by filling in the form on the right.

The information in this article is current as at 11 November 2022, and has been prepared by 91±¬ÁÏ Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (91±¬ÁÏ). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. Some information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. 91±¬ÁÏ does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this article.