Dismissal and Termination
Personal Grievance: A Guide for Employers and Employees
A personal grievance is when an employee in New Zealand believes they have been treated unfairly at work and decides to raise a formal complaint. It can cover situations like unfair dismissal, bullying, harassment, or being put at an unjustified disadvantage.

This matters for New Zealand businesses because how a grievance is handled can affect workplace culture, staff trust, and compliance with the Employment Relations Act 2000. Employers who ignore or mismanage a grievance may face significant costs, including personal grievance payouts, penalties, and damage to their reputation.
In this guide you’ll learn:
- What a personal grievance means in NZ
- Common personal grievance examples
- The process for raising and responding to a grievance
- Timeframes, entitlements, and outcomes
- Practical steps to manage grievances fairly and lawfully
What Is a Personal Grievance?
A personal grievance is a type of formal complaint an employee can make when they believe their employer has treated them unfairly. Under the Employment Relations Act, employees have the right to raise a grievance if they experience:
- Unjustified dismissal (unfair dismissal)
- Unjustified disadvantage (unfair treatment at work)
- Discrimination
- Harassment or bullying (personal grievance bullying)
- Duress related to union membership
- Being pressured into certain work arrangements
For example, a retail worker in Auckland once raised a grievance after being demoted without clear reasons. The Employment Relations Authority found the change to be an unjustified disadvantage, and the employer had to pay hurt and humiliation payments.
Why Personal Grievances Matter for NZ Businesses
Personal grievances are more than legal disputes. They impact morale, productivity, and trust across the workplace. Businesses that fail to follow fair processes may also face:
- Orders to reinstate an employee
- Compensation payouts, sometimes over $20,000 depending on the case
- Damage to workplace culture and employer reputation
Grievances are not just about the money. Many employees file them because they want fairness, respect, and a safe place to work.
The Personal Grievance Process
Raising a Personal Grievance in NZ
An employee must raise a grievance within 90 days of the incident. This is often referred to as the personal grievance 90 days rule. The grievance should be put in writing and explain:
- What happened
- Why it was unfair
- What outcome the employee wants
This is sometimes called a personal grievance letter. Guidance on how to raise one is available from Employment New Zealand.
Responding to a Personal Grievance in NZ
Employers must act quickly. If you’re wondering how long an employer has to respond to a personal grievance, the answer is that a prompt, fair, and reasonable response is expected. This usually means:
- Acknowledging the complaint in writing
- Investigating the matter
- Allowing the employee to share their side
- Following a fair process under the Employment Relations Act 2000
Many NZ businesses choose to involve a mediator through Employment Mediation Services to help resolve disputes before they reach the ERA.
Personal Grievance Outcomes and Payouts
So, how much money can you get for a personal grievance in New Zealand? The answer depends on the case. Personal grievance payouts often include:
- Lost wages (compensation for lost income)
- Hurt and humiliation payments(emotional impact)
- Reimbursement of costs (such as legal fees)
According to the ERA, payouts can range from a few thousand dollars to well over $30,000 depending on the seriousness. In some cases, the personal grievance success rate is higher when employees have strong evidence and employers failed to follow proper process.
Stress and Personal Grievances
Stress is a growing reason for grievances. Personal grievance stress claims are usually linked to:
- Excessive workloads
- Poor management practices
- Lack of support for mental health
Employers in Auckland and across NZ are seeing more claims related to wellbeing. A fair and proactive approach can reduce the risk of grievances being raised. For more information, see WorkSafe New Zealand’s guidance on work-related stress.
Managing Grievances Fairly
For employers, the best way to handle grievances is to focus on fairness and process:
- Always listen carefully to employees
- Document meetings and decisions
- Keep communication clear and respectful
- Follow the employment relations framework under the law
An Auckland business we worked with avoided escalation by quickly investigating a bullying complaint, apologising, and adjusting team structures. The employee felt heard, and the issue never reached the ERA.
Key Takeaways for Employers
- A personal grievance is a formal complaint about unfair treatment at work
- Employees have 90 days to raise a grievance
- Employers must follow the Employment Relations Act 2000 and respond fairly
- Outcomes can include reinstatement, lost wages, and hurt and humiliation payments
- Clear processes, open communication, and mediation can help resolve disputes early
