What Are The Most Common Reasons For An Employee to Raise A Personal Grievance?

Most business owners don't set out to create employment problems.  You're trying to run a business, serve customers, manage cashflow, support your team, and somehow still make it home in time for dinner. Yet every year, employers across New Zealand find themselves dealing with personal grievances that consume time, money, energy, and focus.

The reality is that most personal grievances aren't raised because an employer is intentionally unfair. They're often the result of rushed decisions, poor communication, missing documentation, or not following the correct process.  The good news is that most personal grievances are preventable. Understanding the most common causes can help you identify risks early and put simple systems in place to protect your business, your people, and your peace of mind.

What Is a Personal Grievance?

A personal grievance is a legal claim raised by an employee when they believe they have been treated unfairly by their employer.  By far the most common grievances we see are unjustified dismissal and unjustified disadvantage.  These are also the grievances most employers accidentally create.

What Are The Biggest Areas Of Risk For Personal Grievances?

1. Poor Performance Management

One of the most common mistakes employers make is failing to properly manage poor performance.  An employee isn't meeting expectations, dadlines are missed, and mistakes keep happening. Customers complain and the frustration builds.  Eventually, the employer reaches breaking point and decides enough is enough.

The problem in most employment disputes relating to performance management is that employees often have never been clearly told there was a problem.  Common mistakes include no documentation of performance concerns, expectations that were never clearly communicated, a lack of opportunity for employees to improve, a lack of support or training offered, and dismissals which are rushed through.   

Performance management should never come as a surprise to an employee. It is important for employers to:

• Set clear expectations from the start,

• Hold regular performance conversations,

• Document any concerns when they arise,

• Provide relevant support and coaching, and 

• Give employees a reasonable opportunity to improve.

A good performance management process, well executed, can protect both the employee and the employer.

2. Disciplinary Processes Done Incorrectly

Sometimes employers know there is a problem but fail to follow the correct disciplinary process.  Perhaps an employee has breached a policy, behaved inappropriately, or committed misconduct.  The issue isn't necessarily the concern itself, the issue is often the process.

Common mistakes of employers in disciplinary processes include predetermining the outcome, failing to investigate properly, not allowing the employee to respond, making decisions too quickly, and poor documentation.  In order to avoid these problems natural justice must always be followed.  That means:

• Investigating fairly,

• Keeping an open mind,

• Providing all relevant information,

• Allowing the employee to have a support person, and

• Genuinely considering their explanation.

Even if the outcome seems obvious, skipping steps can create significant risk. A good decision made through a bad process can still result in a successful personal grievance.

3. Poor Communication

Many workplace disputes begin with misunderstandings.  Employees often raise grievances because they feel ignored, disrespected, or left in the dark.  Business owners are busy, so conversations get rushed, assumptions are made, and unfortunately, what seems obvious to you may not be obvious to your employee. Common examples of where lack of communication causes problems include: 

• Changes made without consultation,

• Conflicting instructions,

• Lack of feedback,

• Unclear expectations, and

• Difficult conversations avoided.

Strong communication solves many employment issues before they become formal disputes. It is important to focus on being clear and consistent, having regular check-ins with employees, confirming important conversations in writing, encouraging questions, and addressing concerns early.  Good communication builds trust, and trust can reduce conflict.

4. Workplace Bullying and Harassment Concerns

Bullying complaints are becoming increasingly common.  Not every difficult conversation is bullying, and not every performance discussion is harassment, however, employers have a legal obligation to provide a safe workplace.

Common warning signs that bullying or harassment may be present in your workplace include multiple complaints about manager behaviour, exclusion of some employees from workplace activities, repeated unreasonable criticism of individuals, intimidating behaviour, and complaints which go ignored or are dismissed without process.   Creating a workplace culture where concerns can be raised safely is a good way to reduce thes issues.  Employers should:

• Have clear workplace behaviour policies,

• Train managers appropriately,

• Take complaints seriously,

• Investigate concerns promptly, and

• Address inappropriate behaviour early.  

Ignoring complaints rarely makes them disappear, and more often, sees them escalate. Having clear policies and procedures in place, taking complaints seriously as they arise, and seeking advice from legal experts is the best way to ensure swift and effective resolution.

5. Restructuring and Redundancy Errors

Business conditions change.  Sometimes roles genuinely need to change or disappear.  The challenge is ensuring the process is fair.  Many employers focus heavily on the business reasons for restructuring but overlook the consultation requirements.

Common mistakes during change or restructuring include decisions made before consultation, insufficient information provided, consultation treated as a formality, poor record keeping, and rushing the process.  A genuine change or restructuring process requires:

• A genuine business reason,

• Meaningful consultation,

• Consideration of feedback from affected employees,

• Proper documentation, and 

• A fair decision-making process.  

Employees don't have to agree with the outcome of a restructure, but they must have a genuine opportunity to participate in the process.

6. Inconsistent Treatment of Employees

Nothing fuels a grievance faster than perceived unfairness.  Employees notice when rules apply differently to different people.  For example, when one employee receives a warning while another doesn't, where policies are enforced selectively, when favouritism appears to exist, and when similar situations receive different outcomes.  

Consistency matters.  When addressing concerns, employers should ask themselves "How would I handle this if it involved another employee?" Document decisions and ensure managers understand expectations around fairness and consistency.

7. Poor Employment Documentation

Many employers don't realise they have a problem until a dispute arises. Then they might discover outdated employment agreements, missing policies, meetings without meeting notes, warnings that weren't documented, and key conversations not being recorded.  Suddenly, it becomes one person's word against another's. Good documentation isn't about creating paperwork, it's about creating clarity. 

Employers should keep records of:

• Employment agreements,

• Performance discussions,

• Warnings,

• Investigations,

• Consultation processes, and 

• Significant workplace conversations.

Good records can make all the difference when a dispute arises.

When Do I Need To Ask For Help?

One of the biggest mistakes employers make is waiting too long to get professional help.  Many business owners only seek advice after receiving a personal grievance letter.  At that point, options may already be limited.  The best time to get help is before things escalate.  Seek advice immediately if:

• An employee mentions raising a grievance,

• You are considering disciplinary action,

• You are considering dismissal,

• A bullying complaint is made,

• A serious misconduct issue arises,

• A restructuring is being considered,

• You receive correspondence from an employee representative or lawyer, or

• You are unsure about the next step in a formal process.  

A conversation with a legal expert at the start of an issue can prevent months of stress later.

What Should You Do If a Personal Grievance Is Raised?

First, don't panic.  Receiving a grievance doesn't automatically mean you've done something wrong.  It also doesn't mean the matter will end up before the Employment Relations Authority.  Many disputes can be resolved early when handled correctly.  Stay calm, gather information about the issue to build a clear picture of what occurred,  and get professional advice from a legal expert to help you understand your position, identify risks, and determine the best path forward.

FAQs

How long does an employee have to raise a personal grievance?

Generally, an employee must raise a personal grievance within 90 days of the action or issue occurring.

Can I dismiss an employee for poor performance?

Yes, but only if you follow a fair and reasonable performance management process and provide the employee with an opportunity to improve.

What is the difference between misconduct and poor performance?

Poor performance relates to an employee's ability to meet required standards. Misconduct relates to behaviour that breaches workplace expectations or policies.

Can a personal grievance be resolved without going to the Employment Relations Authority?

Yes. Many grievances are resolved through discussion, negotiation, mediation, or other early resolution processes.

What if I think the employee is wrong?

Even if you believe the employee is mistaken, it's important to take the concern seriously and seek advice. Dismissing concerns without investigation can increase risk.

Do I need HR support if I only have a small team?

Absolutely. In fact, smaller businesses often have less capacity to absorb the financial and emotional cost of a personal grievance. Having expert support available can be invaluable.

What is the best way to protect my business?

Strong employment agreements, clear policies, good communication, proper documentation, consistent management practices, and early professional advice are your best safeguards.

The average business owner doesn't lose sleep over HR when everything is running smoothly.  But one poorly managed employment issue can quickly become a distraction from the work that actually grows your business.  The best protection isn't luck, it's having the right systems, processes, documentation, and support in place before problems arise.  

Employment issues are rarely convenient. Having expert advice available when you need it can save you time, stress, money, and uncertainty.  After all, employing people should make your business stronger,not become a source of constant worry.

If you're dealing with an employee issue, considering disciplinary action, managing performance concerns, or responding to a personal grievance, don't wait until the situation escalates.  A quick conversation today could save you thousands of dollars and countless hours tomorrow.

Contact Employer Direct for an honest assessment of your risks, practical advice, and a clear plan to protect your business and your people. Employer-Direct.co.nz | 0800 612 355

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Disclaimer: The information provided in this blog is for general informational purposes only and should not be considered legal advice. While we strive to keep the information accurate and up to date, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained on the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. For specific legal advice tailored to your situation, please contact a qualified legal professional.