Every year the EMA publishes statistics on personal grievance (PG) determinations of the Employment Relations Authority (the Authority), using data from the Thomson Reuters Westlaw NZ Personal Grievance Tracker Analysis. The purpose of this analysis to get a sense of current trends in terms of the number and type of grievances, awards, costs, and success rates.
Frequently Asked Questions.
How often do employees win their cases in the Employment Relations Authority?
The data for the 2024-year period shows that 58% of employees were successful in winning their case for unjustified disadvantage and/or unjustified dismissal. This demonstrated the balance is being restored in determinations with previous years showing: 2022 – 73% in favour of the employee, and 2023 – 64% in favour of the employee.
The statistics are more in favour of the employee for unjustified dismissal claims – 69% for the Employee and 25% for the Employer. However, with respect to unjustified disadvantage claims, the results are relatively equal – 46% for the Employee and 48% for the Employer.
How much compensation does an employee get for being unjustifiably dismissed?
In 2024, the average award for terminating an employee incorrectly was $11,493 – however the highest award in 2024 was a $193,153 – these figures are inclusive of all awards of a monetary value awarded by the Authority – including loss of wages.
Awards purely for compensation for hurt and humiliation in 2024 were at an average of $15,106 and the highest compensation awarded being for $30,000.
While the average figures have remained approximately the same for the last two years (2022 – $11,922 and 2023 – $11,912) the highest compensation payment has reduced from $38,770 in 2023.
How much money does an employee get for an unjustified disadvantage claim?
In 2024, the average disadvantage compensation payment was $14,038 (slightly up from 2022 – $12,375 and 2023 – $11,677), with the highest disadvantage compensation claim being $36,000.
How much can an employee recover in legal costs if they win their case at the Employment Relations Authority?
The Authority operate on a ‘daily tariff rate basis’ with this being $4,500 for a full day investigation meeting. However, where particular circumstances exist, an employee may be successful in being awarded greater than the daily tariff rate. This would generally be where there has been a ‘save as to costs’ offer presented by the employee in the early stages of the dispute resolution process, a means to try to avoid proceeding to the Authority.
The 2024 statistics confirm that the average (legal) costs award of unjustified dismissal claims was $9,636 and for unjustified disadvantage claims – $10,873.
At Russell Drake Consulting, working only for Employers, we have represented our clients successfully in the Authority during 2024 and into 2025. As part of our usual process, we are able to offer an Employer an objective assessment of the merits of the employees’ case, and the merits of the employer’s successful defence chances and enable you to determine the best strategy for seeking to resolve the dispute at the least possible cost.