4 Strategies to Handle Employment Conflicts in NZ

In Short

• Employment disputes often arise from unfair dismissal, wage disputes, discrimination, and breaches of employment contracts.

• Preventive measures include having clear employment contracts, open communication, and comprehensive workplace policies.

• Effective dispute resolution strategies may involve informal discussions, mediation, and external bodies like the Employment Mediation Services and Employment Court.

Tips for Businesses
To manage employment disputes, focus on prevention by creating clear contracts and policies. Foster open communication and invest in regular training. In case of a dispute, consider internal resolutions first, and seek external mediation if necessary. Always maintain thorough documentation and seek legal advice for complex issues.

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Table of Contents

• 1. Understand Employment Disputes
• 2. Take Preventive Measures
• 3. Have Effective Dispute Resolution Strategies
• 4. Implement These Practical Tips 
• Key Takeaways
• Frequently Asked Questions

Employment disputes are an unavoidable part of owning a business. Navigating the employer-employee relationship can be difficult, yet it is essential for maintaining a healthy workplace and being legally compliant. This article will take you through four tips for when you need to manage an employment dispute in New Zealand. 

1. Understand Employment Disputes

Employment disputes may arise from various issues. Knowing the common causes is the first step in helping avoid disputes. Some of the most common issues arise due to:

• Unfair dismissal: This refers to claims of unjustified termination of employment.
• Wage disputes: For example, disputes over pay rates would fall under this. 
• Discrimination and harassment: This includes issues related to discrimination based on gender, race, age and other factors.
• Breaches of employment contracts: Breaches of the terms and conditions outlined in the employment contract.

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2. Take Preventive Measures

Avoiding employment disputes is much more effective than resolving them once they arise. You can take various preventative measures to minimise the risk of disputes.

Have Clear Employment Contracts

A well-drafted employment contract creates a foundation for a solid employer-employee relationship. It should outline all terms and conditions of employment, such as the employee’s:

• role and responsibilities; 
• pay;
• working hours; and 
• leave and other entitlements. 

Both you and your employee should agree to the contract terms to minimise misunderstandings. However, your employment contracts should outline dispute resolution mechanisms in the event of a conflict. 

Communicate Openly

Facilitating open communication in your workplace will help you recognise and address issues while you can still effectively handle them. Having an open-door policy can encourage a culture of honesty and trust.

Have Comprehensive Policies and Procedures

Having written policies on potential workplace issues and how they will be resolved is crucial. These policies should be accessible by employees at all times and reviewed often to ensure they are still relevant and comply with the current laws.

Focus on Training and Development

Undertaking regular training on common causes of disputes can equip you and other staff with the skills required to handle disputes effectively. For example, this might include attending training sessions on employment law or conflict resolution. Maintaining an awareness of your legal obligations and the industry’s best practices minimises the chances of misunderstandings arising.

3. Have Effective Dispute Resolution Strategies

Disputes will likely still arise, no matter how hard you try to avoid them. Implementing effective resolution measures will help you resolve conflicts quickly.

For example, some internal resolution processes might include:

• encouraging the disputing parties to resolve disputes informally through open discussions;
• having internal mediation sessions to help the parties come to a mutually acceptable resolution; and
• implementing a system in place to formally lodge grievances. 

Where internal processes are not enough, it may be necessary to look to external options. In New Zealand, some of the most common external dispute resolution bodies are the:

• Employment Mediation Services (EMS): The Ministry of Business, Innovation and Employment (MBIE) offers mediation services for employment-related disputes; 
• Employment Relations Authority (ERA): Where mediation fails, the dispute can be referred to the ERA, which investigates disputes; and  
• Employment Court: The court is the next level of resolution for more complex or unresolved cases. It should be treated as a last resort. 

4. Implement These Practical Tips 

Employers play a major role in managing employment disputes. Some practical tips to consider implementing are outlined below:

Consider the Legal Framework

You should try to understand the legal framework that oversees employment disputes in New Zealand. For example, the Employment Relations Act 2000 is the main legislation that oversees employment relationships in New Zealand. Other relevant legislation includes the Health and Safety at Work Act 2015 and the Human Rights Act 1993.

Keep Thorough Documents 

Keeping records of employment agreements, performance reviews, disciplinary actions and communications can be useful evidence if a dispute arises. It is important because these documents help demonstrate compliance with the legal requirements. 

Obtain Legal Advice

Working with an employment lawyer can provide expert guidance on handling disputes and ensuring you comply with employment laws. This is particularly relevant if you have a complex dispute. 

Emphasise Workplace Culture

Maintaining a positive workplace culture will minimise the likelihood of disputes. You should encourage all employees to be respectful and inclusive of each other. Futhermore, ensure you recognise positive behaviours to solidify your emphasis on workplace culture. 

Key Takeaways

Navigating the employer-employee relationship can be difficult, but maintaining a healthy workplace and being legally compliant is essential. Some key tips for managing employment disputes in New Zealand include:

• understanding the source of employment disputes;
• taking preventative measures;
• having effective dispute resolution strategies in place; and
• implementing practical tips.

If you would like further advice on workplace conflicts, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0800 447 119 or visit our membership page.

Frequently Asked Questions