Employment Relations Authority Guide

The Employment Relations Authority (ERA) is an independent body in New Zealand that helps resolve employment disputes between employers and employees. It was established under the Employment Relations Act 2000, and its main role is to investigate problems and make legally binding decisions.

For New Zealand businesses, understanding how the ERA works is important. Issues such as unjustified dismissal, pay disputes, or breaches of employment law can end up in front of the ERA if they cannot be resolved at workplace level or through mediation. A lack of awareness often leads to unnecessary costs, time delays, and strained workplace relationships.

In this guide you’ll learn:

• What the Employment Relations Authority is and how it works.
• Why ERA decisions matter for employers in New Zealand.
• The process of ERA cases, costs involved, and options for appeal.
• Practical steps employers can take to stay compliant and avoid disputes.

‍

What is the Employment Relations Authority in New Zealand?

‍

The Employment Relations Authority, often called the ERA, is a specialist tribunal that investigates employment disputes. It is less formal than a court but still has legal powers to make decisions that are binding.

The ERA looks at the facts of each case, listens to both sides, and then makes a determination. Common issues that go to the ERA include:

• Personal grievances, such as claims of unjustified dismissal or unfair treatment.
  
• Disputes about employment agreements.
  
• Breaches of the Employment Relations Act 2000.
  
• Wage, holiday pay, or leave entitlement disagreements.
  

Think of the ERA as a place where employment problems are sorted fairly and lawfully, when other steps like mediation through MBIE’s Employment Mediation Services have not worked.

‍

Why the Employment Relations Authority Matters for Employers

‍

For Auckland and New Zealand businesses, an ERA case can have real consequences. Decisions made by the ERA can require an employer to:

• Reimburse lost wages.
• Compensate employees for hurt and humiliation.
• Reinstate an employee to their role.
• Pay legal and process costs.

One Auckland café owner recently shared how a lack of written employment agreements led to an ERA hearing that cost them both financially and emotionally. This is a common scenario, and it highlights why compliance with employment law is critical for businesses.

When employers understand how the ERA works, they can manage risks better, handle disputes more effectively, and protect their workplace culture.

‍

The Employment Relations Act and ERA Regulations

‍

The ERA operates under the Employment Relations Act 2000. This Act sets out the rules and obligations for both employers and employees in New Zealand. It covers employment agreements, collective bargaining, personal grievances, and dispute resolution processes.

Employers need to be aware that ERA decisions are guided by this law. Keeping up with Employment Relations Act regulations and other employment law requirements is essential for staying compliant and avoiding unnecessary disputes.

‍

How the Employment Relations Authority Process Works

‍

If an issue reaches the ERA, the process usually follows these steps:

1. Application lodged
   
   1. One party (employer or employee) files an application with the ERA.
      
2. Investigation meeting
   
   1. The ERA holds a meeting, which is less formal than a court hearing but still structured. Both sides present evidence, documents, and witnesses.
      
3. Decision made
   
   1. The ERA member reviews the case and issues a written decision. This is legally binding and published publicly.
      
4. Appeal option
   
   1. If either party disagrees, they can appeal to the Employment Court.
      

‍

Employment Relations Authority Costs

‍

The costs involved in ERA cases can vary. While filing fees are relatively modest, the bigger cost often comes from lost time, legal fees, and potential compensation orders. Employers should also factor in the reputational impact of an ERA decision being made public.

‍

A practical step for employers is to resolve issues early through mediation, which is usually quicker and cheaper than going through the ERA process.

‍

Employment Relations Authority in Auckland

‍

Many ERA hearings in Auckland involve small to medium-sized businesses that don’t always have dedicated HR teams. Cases here often highlight common issues such as poor documentation, unclear job descriptions, or lack of proper process during disciplinary action.

‍

Local support from HR consultants can help Auckland businesses prepare for ERA hearings or, better yet, prevent disputes from escalating to that point.

‍

Employment Relations Authority Cases and Decisions

‍

ERA cases and decisions are published online through Employment NZ and can be viewed by the public. Employers can look at past decisions to understand how similar disputes have been resolved. This is a useful way to learn from real examples and strengthen internal policies.

‍

Key Takeaways for Employers

• The ERA is a legal authority in New Zealand that resolves employment disputes when mediation fails.
• It operates under the Employment Relations Act 2000 and its decisions are binding.
• Costs include filing fees, legal expenses, compensation, and reputational risks.
• Employers should maintain compliance by having clear employment agreements, following fair processes, and resolving issues early.
• Auckland businesses, in particular, benefit from proactive HR support to avoid costly disputes.

‍