Back again for another year, the Employment Relations Authority’s Annual Report offers a behind the scenes look at trends in employment disputes making their way to the Employment Relations Authority (Authority).
This year’s report not only highlights a continued rise in workplace disputes going to the Authority, but also touches on familiar themes from last year’s report, such as higher levels of compensation for successful personal grievances.
Applications
The number of applications in the Authority continue to grow. In 2025, the Authority received 3,070 applications, which was a 12% increase from 2024 and a 45% increase from 2023.
The Authority received a range of applications, with some including more than one type of dispute. The top three categories were:
- personal grievances (2,373 applications)
- breach of legislation (1,835 applications)
- wage arrears (1,027 applications)
It is common for applications to involve more than one type of dispute, meaning many applications included multiple issues for the Authority to consider.
Most Popular Type of Personal Grievance Claims
Unjustified dismissal personal grievances were unsurprisingly the most common grievance advanced in the Authority, with 1,680 claims. Of those, 408 were constructive dismissal claims.
Disadvantage personal grievances also made up a significant portion of claims, with 1,474 recorded.
Representation in the Authority
Representation in the Authority continues to be a mix of lawyers, advocates, and self-represented parties. On average, 51% of parties used lawyers and 25% were represented by advocates.
Number of Authority Determinations and Timeframes
The Authority issued 852 determinations in 2025, which is a 9% increase from 2024. Of these determinations, 98% were issued within three months the investigation meeting or from the date the Authority received the last evidence or information from the parties.
Reinstatement
Interim reinstatement applications increased significantly from 22 in 2024 to 40 in 2025, although only 12 were successful. Permanent reinstatement applications remained unchanged at 19 applications in 2025, with only 6 applications being successful.
Compensation
Compensation for humiliation, loss of dignity and injury to feelings under section 123(1)(c)(i) of the Employment Relations Act 2000 (Act) continues to be a common remedy for successful personal grievance claims, with 231 applicants receiving a compensation award in 2025.
While most compensation remained within the $5,000 to $20,000 range, there were 42 cases where compensation exceeded $25,000, representing a 50% increase from 2024. The highest compensation award was $105,000 (made up of $45,000 for one unjustifiable action and $60,000 for the unjustified dismissal) in Bowen v Bank of New Zealand [2025] NZERA 380.
Mediation
In 2025 the Authority referred 1,946 cases to mediation, a 20% increase from 2024. The Authority has a duty to consider mediation under the Act, meaning that mediation is usually the first step once an application has been filed with the Authority if it has not already occurred.
The increased use of mediation aligns with broader trends reported by the Ministry of Business, Innovation and Employment (MBIE), which recorded a 9.1% increase in mediation applications in 2024/2025. Despite increased wait times for scheduled mediation in late 2025, MBIE reported a settlement rate of 66.2% for mediations. MBIE also recorded that it delivered 13.19% more interventions in 2024/2025 across mediation, early resolution (a free, phone based service), and settlement certification services.
Challenges to the Employment Court
Of the matters that went to the Authority, 18% were challenged to the Employment Court. While this is a decrease from the number of challenges in previous years, it does not necessarily reflect a reduction in the number of cases heard by the Employment Court.
The Employment Court recorded in its annual report that 233 new cases were filed in the Court from 1 January 2025 to 31 December 2025, compared to 201 cases filed in the same period in 2024. Of the new cases in 2025, 94 were substantive hearings, 27 interlocutory and 3 hearings on preliminary matters.
Looking forward to 2026
On 21 February 2026, the new sections 123B and 123C of the Act became effective and will influence future remedies and awards in the Authority. Section 123B provides that the Authority (or the Employment Court) must not provide any remedy if the Authority determines an action of the employee contributed to the situation that gave rise to the personal grievance and that action amounts serious misconduct. Similarly, section 123C provides that Authority (or the Employment Court) must not award reinstatement or compensation if it determines that an action of the employee contributed to the situation that gave rise to the personal grievance (with no serious misconduct finding needed). Section 124 of the Act was also amended to make it clear that any remedies that were awarded could be reduced by up to 100%.
These legislative changes will likely limit the number of remedies awarded. However, where a remedy such as compensation is given, it will be interesting to see if the awards continue to increase in line with the above trends or whether the award amounts will plateau.
If you have any questions about employment relationship problems, 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.
