Workplaces are dynamic environments, and sometimes things can go wrong. When they do, New Zealand employment law provides a pathway to resolve these disputes, known as the personal grievance process.Understanding how this works is important for both employees and employers, as it ensures workplaces operate fairly and allows for disputes to be resolved constructively.In Central Otago, where many businesses are small and seasonal work is common, knowing your rights and obligations can make a big difference. A well-managed process can protect legal rights and help to maintain strong workplace relationships.What Is a Personal Grievance?A personal grievance is a formal complaint raised by an employee, or an ex-employee if they believe they’ve been treated unfairly at work. They exist to ensure fairness and accountability in employment relationships.Common grounds for a personal grievance include:Unjustified dismissal – being fired without a valid reason or fair processUnjustified disadvantage – negative changes to work conditions without justificationDiscrimination or harassment – including racial or sexual harassmentEmployees must raise a grievance within 90 days of the incident (or 12 months for sexual harassment claims). The process usually starts with a written complaint to the employer, followed by mediation if needed, and as a last resort claims to the Employment Relations Authority or the Employment Court.Unjustified DismissalThis occurs when an employer:Lacks a valid reason for dismissal, orFails to follow a fair processValid reasons can include serious misconduct, restructuring, or bullying. Even with a good reason, the dismissal may still be unjustified if the process wasn’t fair.Unjustified DisadvantageThis happens when an employer’s actions negatively affect an employee’s work conditions without justification. Examples include:Removing responsibilities without explanationMaking changes that hinder job performanceIssuing an unjustified warningFor Employees: Know Your RightsIf you believe you’ve been treated unfairly you should seek legal advice to help you raise the issue with your employer. Ideally this should be in writing, be clear about what happened, how it affected you, and the resolution that you seek.If the issue isn’t resolved, you can seek free mediation through the Ministry of Business, Innovation, and Employment (MBIE). In the event that a mediation fails, the matter can then be escalated to the Employment Relations Authority (ERA).Potential remedies can include compensation for lost wages or emotional harm, reinstatement, and rectifying the disadvantage.For Employers: Responding Fairly and LegallyAs an employer, receiving a personally grievance can be challenging. It is important to continue to act in good faith, and engage in honest, open and constructive communications with your employee. Failure to do so can escalate disputes as well as damage confidence and trust. As an employer it is important to:Acknowledge the grievanceReview the complaint thoroughlyFollow a fair process and allow the employee to respondSeek legal advice How to Avoid GrievancesEmployers:Keep clear employment agreementsDocument decisions and processesCommunicate openly and earlyEmployees:Raise concerns promptlyKeep written recordsSeek advice before escalatingThe Cost of Getting it WrongPersonal grievances can be expensive and stressful for both sides. Employers may face compensation orders for lost wages and emotional harm, legal costs, and reputational damage. While employees can experience financial hardship during disputes, as well as emotional strain and uncertainty. Seeking legal advice and an early resolution through open communication and mediation can often save time and relationships.Why This Matters LocallyIn Central Otago, where many businesses are small and there is a strong sense of community, handling employment issues with care and sensitivity is especially important. A well-managed personal grievance process not only protects legal rights but it also helps to preserve relationships and work place culture.How Checketts McKay Can HelpAt Checketts McKay, we assist both employers and employees with practical and timely advice. Whether you need help drafting employment agreements, raising a grievance, or navigating mediation our employment team can guide you through the process. We aim to resolve issues early and constructively, reducing the stress and cost for everyone involved.