News

New Zealand's employment dispute system is under review, and Business South has made a formal submission to MBIE on behalf of our members. 

The system is not working as it should. Disputes are taking too long to resolve, costs have escalated significantly, and outcomes are too unpredictable for either employers or employees to feel confident that justice has been served. For SMEs, which make up the majority of our membership, the impact is real. A single personal grievance can cost tens of thousands of dollars and consume months of management time. 

Our submission covers eight key areas: 

• Delays in reaching a resolution 

• Mediation not functioning as intended 

• The early resolution service being inaccessible once a personal grievance is raised 

• AI-generated and unmeritorious claims 

• Unregulated employment advocates 

• Inconsistency in the Employment Relations Authority 

• Geographic access to mediation in regional New Zealand 

• The knowledge gap facing SMEs navigating a complex system 

We have made practical recommendations across all eight areas, focused on faster resolution, better early intervention, regulated advocacy, and meaningful support for small businesses. 

Members can read the full submission in the Business South app. 

MBIE's consultation closed on 31 July 2026. Business South will continue to engage with this process as it develops and will keep members informed of any proposed changes.