Employment disputes in 2025 – delays, delays, and more delays
Employment disputes are dealt with through a number of mechanisms, largely governed by the Employment Relations Act 2000
If a personal grievance cannot be resolved between the parties, the usual next step is mediation. Mediation is provided by the Ministry of Business Innovation and Employment (MBIE), and is a free service. Whilst in-person mediation used to be the only option, in the post-pandemic world Zoom mediations are now the norm. Mediations are normally set for half a day, or a full day if the employee is still employed.
Unhelpfully, the wait time for mediation is currently around 10 weeks. This is as a result of various factors within MBIE, and while internally MBIE is working hard to improve this delay, it is unlikely to improve drastically in the near future.
What does this mean? Well, this can be a significant problem where the employee is still employed, and the employment relationship continues to deteriorate during the wait for mediation. It also means both parties have an active dispute hanging over their heads, delaying the ability to move on. For the employer this might delay hiring a new employee; for the employee it might impact on their ability to find another role. I expect it is also putting employees who have genuine claims off raising issues in the first place – if they do, they need to be prepared for a long and drawn out process to resolve their dispute.
One option is private mediation. We have a number of private mediators we can recommend, and often use. This of course comes at a cost, which almost always is borne by the employer. However, that cost can be worth having the matter resolved in a timely manner.
An alternative option (and one that is always available throughout the life cycle of a grievance) is for the parties or their lawyers/representatives to negotiate a settlement between themselves. This is where having a good team of advisors is enormously valuable. Where settlement is appropriate, a lawyer who has the experience and relationships to negotiate a settlement quickly can save parties a great deal of time, money and effort.
If the grievance does not settle at mediation, usually the next step for an employee who wants to pursue their claim is an application to the Employment Relations Authority (Authority). Although not as long as mediation delays, there are also currently delays in cases moving through the Authority. If either party is unhappy with the decision of the Authority, or i some other narrow situations, the matter can be heard by the Employment Court.
The process for resolving employment disputes is intended to be low-cost, quick, and avoid the need for judicial intervention. However, at the moment, significant delays are undermining this process, resulting in additional costs and time, and fundamentally impacting on access to justice for those who often need it the most. Of course, prevention is better than cure, but if you find yourself on either side of an employment dispute, then take advice early, be pragmatic about the outcome, and choose your advisor wisely.
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If you have any questions about this article, please contact our Employment team.
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