Personal Grievance Claims

Personal grievances or PG’s – everyone knows these are words and letters that employers fear.   

First up – it's important to know that if you have followed a good employment process, you should take comfort from this, but it may not stop an employee laying a grievance claim. 

So, what is a personal grievance? A personal grievance is a claim from an employee (generally referred to as a PG) which can, initially at least, arrive in a variety of forms. For instance: 

• It may involve the employee meeting with you and telling you that they have a claim/personal grievance against you; 

• Alternatively, the employee might outline their position in a letter or email, or a similar letter might arrive from an employee’s union representative or their advocate or lawyer. 

• Finally, the claim might come in the form of formal documentation that has been filed in the Employment Relations Authority known as a Statement of Problem. 

In some cases, a PG is received following a formal process that you have followed with, relating to performance or misconduct, but sometimes they are received unexpectedly. 

In general, a claim must be lodged within 90 days of when the grievance occurred or came to the employee's attention. The exception to this, is when the claim relates to sexual harassment, in which case the claim must be raised within 12 months of which the action was alleged to have occurred.   

When you receive a PG, it is important that you take it seriously and follow the correct process. Receive the claim calmly and don’t rush into a response, verbal or written. You should seek advice from our HealthyPractice team or your HR or legal advisers. 

If you have employment disputes cover as part of your business insurance you should contact your insurer before you take any action. If you are undertaking a disciplinary process, restructure redundancy or performance management process there is usually a notification process requirement before you start the process. 

There are several actions you should take—or at least consider—while preparing to respond to a personal grievance claim: 

• Clarify the nature of the grievance: Seek to understand what has occurred and why the employee is raising the issue. In smaller workplaces, this may be immediately obvious. Any enquiries should be discreet and handled sensitively to avoid escalating the situation. 

• Collect relevant documentation: Gather emails, letters, and other records that may support or refute the employee’s claims, or that form part of the communication trail leading to the grievance. 

• Exercise caution in communications: Be mindful of what you say—both verbally and in writing. Comments made after a grievance is raised can influence the outcome, particularly if they reflect bias or a predetermined view. This applies equally to internal communications made before any formal dispute arises. Emails discussing an employee’s behaviour or performance can be damaging if later disclosed. 

• Consider operational continuity: In most cases, the grievance will not disrupt day-to-day business. A brief conversation with the employee acknowledging receipt of the claim and confirming that you will respond in due course is often sufficient. 

• Respond appropriately to serious allegations: If the grievance involves serious claims such as bullying or sexual harassment, more immediate action may be required—such as suggesting leave or temporarily separating individuals. It’s essential to avoid both inaction and overreaction, as either could worsen the situation or lead to further claims. These matters are complex and should be managed with external advice. 

In most cases, once you've had time to consider your position, the next step is to meet with the employee to discuss the grievance. While it's not always required, it's common for the employee to bring a representative. You should also have a support person present to help ensure the meeting is conducted appropriately and to protect against any later claims of misconduct or miscommunication. It ensures that you are protected from allegations made subsequently that you mishandled the meeting or said or did something you didn’t. 

Likely pathways 

If the grievance has been raised by a lawyer, on behalf of the employee, then we would suggest that you engage a lawyer. This will ensure that responses to communications are timely, and a good employment lawyer will know exactly how to respond to them at each step of the way.  

Mediation can be one of the pathways to resolution, this involves an independent mediator, appointed by the Employment Relations Authority (ERA) and they will set a date. 

Privacy reminder  

These matters can be complex and emotionally charged, which is why maintaining strict privacy and confidentiality throughout the process is critical. Sharing details inappropriately, whether intentionally or accidentally, can compromise the integrity of the investigation, damage reputations, and expose the organisation to legal risk. All parties involved must be assured that their concerns will be handled discreetly and respectfully. A confidential approach not only protects individuals but also reinforces trust in the workplace and the grievance resolution process. 

Outcomes 

An agreed settlement is a common outcome; this is detailed in a Record of Settlement which is lodged with the ERA. The Record of Settlement records the terms of settlement including any financial compensation to be paid for loss of income and sometimes hurt and humiliation. 

Sometimes an employee will request reinstatement, and currently this will be the first course of action by the ERA for employees who have been found to be unfairly dismissed. 

Conclusion 

This process is difficult, time consuming and potentially expensive. But fear of the process shouldn’t stop you from dealing with difficult employees or situations in the workplace that are causing upset to other employees. 

Before you start any disciplinary process – know what you can and can’t do Disciplinary process (healthypractice.co.nz), seek advice from our HealthyPractice team, document everything and follow a robust process.