Our German Desk
It is that time of year again when the Employment Relations Authority (Authority) publishes its Annual Report (the Report), and the Employment Law Team at Hesketh Henry loves a good stat! The Report provides analytical data related to applications that have been filed with the Authority. This includes the number of applications filed, the types of applications made, whether a party is represented or not, the compensation awards in the Authority and more. In this article, we break down some of the more interesting statistics from the Report and provide some commentary as we go.
Mediation and mediation referrals
The Ministry of Business, Innovation and Employment’s (MBIE) mediation service has received a 20.1% increase in the number of applications that have been referred or directed from the Authority compared to the previous year. It is important to note that this statistic is only in respect of mediations which have been referred from the Authority, and not those that have been engaged in by parties prior to filing proceedings or engaged in of their own volition.
MBIE has also produced a report for 2023/2024 which confirms that there has been an uptake in the use of its mediation services, with 4,580 mediations taking place nationwide. This is a 23% increase in mediation participation since the year prior (more than 1,000 additional applications for mediation than last year). These statistics are unsurprising given the delay that many have experienced in scheduling and confirming attendance at mediation, which has likely been compounded by the government restructures which took place last year. For those of you eagerly awaiting mediation, it is approximately a 10 week wait from applying for a mediation to the date set down for the mediation.
The increase in popularity of MBIE’s mediation services is largely due to the fact that this service is free and is still overwhelmingly successful for the majority of parties that engage in this process. MBIE recorded that in 2023/2024, 67% of mediations resulted in the resolution of the matter and a subsequent settlement agreement.
Applications received by the Authority
Overall, there was a general increase in the number of applications that the Authority received. In 2023, the Authority received 2,117 applications, and this has surged to 2,745 in 2024. This represents a 29.6% increase, almost a third more than the previous year.
From these statistics, it appears that parties are more litigious and willing to pursue matters in the Authority than previously. This means that seeking legal advice before matters escalate is likely more important than ever, as failing to engage with a matter may result in proceedings being filed.
Types of applications
As anticipated, of the more than 2,000 applications received by the Authority, the majority of them pertained to personal grievances and breaches of employment legislation. Of the personal grievances raised with the Authority in 2024, 1,539 were in respect of unjustified dismissal claims, closely followed by approximately 1,100 unjustified disadvantage claims.
Audiovisual technology and remote hearings
Since the pandemic we have all integrated the use of electronic and video conferencing into our day-to-day routines. The Authority is no different. It appears that investigations via audiovisual or remote hearings are here to stay, with an increase in the number of investigation meetings involving audiovisual technology since 2023. Whilst there is still a strong preference for all parties to be physically present for investigation meetings, audiovisual technology is available specifically where attendance in person is not possible, or where it may be difficult or unsafe for parties.
Representation
Be it advertising, search engine optimisation, articles in the news or costs, there has been a shift in the type of representatives who filed applications in the Authority in 2024. In particular, employees (who in 2023 were predominantly represented by lawyers) are now choosing to be represented by advocates (40%) or to have no representation at all (19%). This is something that has also been noted in practice. In contrast, the use of advocates by employer parties has reduced and employers were primarily represented by lawyers (61%) in 2024.
Reinstatement
Reinstatement is currently the primary remedy under the Employment Relations Act 2000 (Act) but has historically been underutilised. In 2024, there has been a modest increase in the applications for both interim and permanent reinstatement by employees. In 2023 there were only 13 applications for interim reinstatement and 16 for permanent reinstatement, while in 2024 there were 22 interim and 19 permanent reinstatement applications. Despite this slight increase, the number of successful applicants to be reinstated on an interim and permanent basis remains low, with only 11 interim applications and 5 permanent reinstatement applications being successful in 2024.
The limited number of reinstatement cases in the Authority, both in 2024 and previous years, does not come as a huge surprise. This is likely given the cost, effort, urgency and potential risk associated with being unsuccessful in an application for interim reinstatement (as well as having to deal with the application for permanent reinstatement), not to mention that it can be hard for an employee to return to a workplace they have left. A contributing factor for some employees is that once dismissed they have lost their income. This means that very few of these employees have the means to fund litigation and to wait and see if they get reinstated months, if not a year later.
Compensation
There has been a continued rise in the compensation awarded to successful litigants under section 123(1)(c)(i) of the Act. This type of compensation is for humiliation, loss of dignity, and injury to the feelings suffered by an employee and is tax free. The Report shows that the majority of the awards in 2024 were between $15,000 and $19,999, followed by awards between $20,000 and $24,999.
Source: Page 20 of the ERA Annual Report 2024.
So, what does this mean for parties with current employment relationship problems?
We foresee this trend continuing, with larger awards for compensation being provided to successful litigants in the Authority and Employment Court (Court) but also in the compensation awards sought and agreed in mediations and records of settlements.
There is, however, still a spectrum of compensation awards in the Authority. In 2024, the lowest compensation award was $700 and the highest was $105,000 in Parker v Magnum Hire Limited (although we note that the parties in this case have since entered into a settlement and as part of this, the Authority determination including the compensation award has been set aside). Nevertheless, this case is a reminder of the Authority’s ability to award potentially large sums of compensation and that in the right circumstances, it will do so (see the awards granted in the recent case of Bowen v Bank of New Zealand [2025] NZERA 380).
Challenges to the Court
There has also been an increase in the number of determinations that have been challenged in the Court, from 17% in 2023 to 22% in 2024. This is notable given the increase in the number of determinations issued between 2023 and 2024. Again, this goes to show that parties appear to be more litigious than they once were and are willing to not only take matters to the Authority, but also to challenge determinations where they are unsatisfied with the outcome.
If you have any questions about mediation, the Authority or the Court, please get in touch with our Employment Law Team or your usual contact at Hesketh Henry.
Disclaimer: The information contained in this article is current at the date of publishing and is of a general nature. It should be used as a guide only and not as a substitute for obtaining legal advice. Specific legal advice should be sought where required.
