Common reasons employees raise personal grievances in New Zealand

Many personal grievance claims don't stem from a single bad decision. Instead, they build up from small issues that go unaddressed over time and compound into a strained or dysfunctional working relationship.

More than ever, employees are aware of their employment rights and are exercising them - the Employment Relations Authority saw a 45% increase in applications in 2025 (vs 2023), and 77% of those were personal grievance claims.

Personal grievances typically focus on employer actions or treatment the employee (or ex-employee) perceives are:

Without sufficient justification, e.g. dismissing the employee for minor mistakes.
Procedurally flawed, e.g. not providing proper warnings for underperformance or misconduct, not consulting with the employee about termination or another significant change to their role.

When it comes to personal grievances and other employment disputes, prevention is the best form of protection. Building and maintaining strong relationships with all your team members means you are less likely to have misunderstandings or a series of incidents that require drastic action. You’re also more likely to identify when things are getting off track and have the tools (and rapport) to raise issues and find solutions that work for the business and the employee, whether that is formal performance management or less formal coaching.

For busy employers and managers, an HR system that provides full-service software and on-call HR advice helps ensure you have the coverage and expertise to manage all your employment relationships smoothly and legally. You’ll be far less likely to face personal grievance claims (MyHR has never had a successful personal grievance case brought against an employment process we recommended to a customer), and you’ll have the right backing if one is raised against you.

In this post we look at the common reasons employees file personal grievance claims, the red flags to look for in the employee relationship, and how a HR system coupled with expert HR support can help you avoid issues that lead to personal grievances.

Common reasons employees raise personal grievances

Dismissal without a valid reason or fair process - unjustified dismissal is the leading reason employees raise personal grievance claims, either because:
- They challenge the reasoning behind the decision (or the employer didn’t give one at all), or
- The process didn’t include the legally-required steps to investigate and raise concerns with the employee, give the employee time to respond, and then genuinely consider the response when making a decision.
Unresolved or poorly-handled performance or conduct issues - little or no documentation of issues and responses, not providing the employee the chance to improve (and the support to do so), not giving sufficient warning that dismissal could be a potential outcome.
Underpayment or failure to provide benefits or bonuses as agreed to in the employment agreement.
Restructuring or redundancy that wasn't based on a genuine commercial reason or consulted on properly.
Constructive dismissal - the employee feeling forced to resign because of the employer’s actions, e.g. demotion, isolation, unreasonable pressure.
Instances of bullying, harassment, or discrimination being raised by the employee but not properly acted on or investigated.
Perceived unfair or disadvantageous treatment compared to colleagues, e.g. inconsistent application of company policy.
Breakdown in communication, e.g. employee feels unable to raise concerns or does so and hears nothing back.

The pattern behind most of these: early warning signals get missed

Many of the matters that lead to an employee raising a personal grievance start small. The employment relationship might degrade slowly and the employee might feel undervalued or unsupported. It might not be deliberate - it could be that the employer and the employee have heavy workloads or aren’t sure of their obligations.

Even if you are dealing with a really tricky staff member or a major event was the deciding factor - e.g. what appeared to be a clear case of serious misconduct that led to summary dismissal - there were likely to be signals or steps along the way that weren’t resolved.

That’s why every business needs proper HR procedures and oversight to ensure every employment relationship is managed effectively and in compliance with workplace regulations. It starts with hiring the best people, establishing clear expectations during onboarding, and then maintaining the relationship through consistent communication and performance tracking. When issues arise, either party should be able to raise it and then work together on solutions.

Using HR software gives you the tools to manage every step of the employee lifecycle, so you’re not reliant on manual processes or ad-hoc responses. But any software is only as good as its inputs; that’s why you need expert HR advice to ensure all your procedures and documentation are fit for purpose and legally sound. If problems with employees arise or employment law changes, you know you have the backing of experienced HR professionals.

How an HR system helps you catch issues before they escalate

A good HR system that provides a combination of software tools and expert HR advisory services makes it easier to maintain healthy relationships with employees and helps identity and resolve issues before they become a major problem. Key benefits include:

Centralised documentation - easy to reference and share key documents like employment agreements and company policies, so obligations and procedural requirements are clear to management and workers.
Performance tracking - notekeeping, accurate recording of performance conversations and warnings, and automatic reminders for follow-up actions make sure there is a transparent record, issues are identified, and activities aren’t missed.
Automated processes ensure managers apply policies consistently across the team.
Alerts or flags when a process step is missed or overdue.
Real-time insights - up-to-date, centralised employee data helps identify patterns (e.g. increased sick leave or absenteeism, drops in performance), so you can target solutions and implement proactive measures (e.g. targeted training).
Easy access to HR advice at any point, e.g. a manager is unsure of the best approach (rather than after they have made a decision that could be contentious).

Real-world scenario: how an HR system prevented a successful personal grievance claim

Simone works as a concierge in a small but bustling boutique hotel. She enjoys the job and has developed a good working relationship with their manager and coworkers. However, on occasions she has to deal with unhappy or unruly guests, which can leave Simone feeling upset and sometimes unsafe.

At first, Simone doesn’t raise the matter with her manager, as she knows everyone is busy and that there are more pressing issues to deal with. However, Simone starts to feel increasingly worried and stressed about her role. She avoids situations that might end in confrontation and thinks about quitting. She starts taking more sick leave.

Fortunately, the hotel has a robust HR system that includes a performance review module (with automated check-in meetings) and leave management tools. Simone’s manager hasn’t noticed these effects on Simone, but has seen the pattern of increased sick leave and as part of the regular review process, asks Simone about it. Simone feels she can explain what’s going on and asks if there is anything the hotel can do. They discuss safety protocols and also training that could give Simone skills to deal with difficult customers. The manager contacts the HR platform’s advisory team, who suggest a provider of de-escalation and conflict training courses.

The training helps Simone with actions and responses that make her feel more in control and able to deal with difficult situations. She also feels supported by her employer, and no longer thinks about resigning. Hotel management is glad the situation was caught in time to remedy, as they know they have a legal duty to provide a safe workplace, and that failing to follow up on issues an employee raises could breach their good faith obligations and be grounds for a potential personal grievance claim.

Frequently asked questions about HR support and personal grievance risk

Can HR software prevent a personal grievance?

On its own, no. HR software isn’t able to prevent personal grievance claims. Most employees have the right to raise a personal grievance within 90 days of an event occurring or coming to their attention.

However, HR software combined with the support of HR specialists can significantly lower the risk of personal grievance claims by building strong employment relationships and adhering to employment regulations. Even if an employee does raise a grievance, you can rely on solid, clearly-documented process and expert advice that can make resolution or settlement quicker and easier.

Why does poor documentation lead to personal grievances?

Poor documentation can lead to employment problems and personal grievances because it creates a lack of objective evidence, making it difficult to justify performance or disciplinary actions. It can also make it harder to align employee performance against agreed-to objectives, e.g. OKRs or KPIs in a performance review.

What features should an HR system have to help prevent personal grievances?

A good HR system should have a suite of tools for managing the employment lifecycle, from hiring and onboarding to performance tracking and leave management. The system should facilitate communication between management and staff, while building a detailed picture of employee performance and conduct so you can spot issues before they escalate.

The key feature your HR system needs to prevent personal grievances is access to real, human HR advisory support. Most HR platforms give you access to software with little in the way of guidance when a difficult situation arises (and one inevitably will). MyHR is the only HR system with experienced Kiwi employment advisors accessible for unlimited support, directly through the platform.

Is it worth using HR software if you're a small business with only a few staff?

Most small business employers aren’t HR specialists, and while you might be able to handle basic processes like hiring and managing employee leave using online documents and spreadsheets, you might struggle to accurately track performance or set aside time to regularly check in with your team. You might also miss important legal obligations, which could increase your risk of personal grievance claims or other challenges.

What should an employer do if they spot a warning sign that could lead to a personal grievance early?

Act. Don’t wait in the hope that the issue will resolve itself over time. It’s much safer and better for the company (and your team) to address issues as soon as you’re aware of them.

Smaller issues are often much easier to resolve informally and will help maintain a healthy working relationship, where the employee feels supported and valued.

Read our advice on how to manage employee issues before you need disciplinary.

Does having an HR system reduce the cost or risk of a grievance claim?

While no system can completely eliminate the risk of a personal grievance claim, responsive HR software coupled with expert HR advice can lower the risk that issues with an employee will get so bad they raise a grievance claim against you.

An HR system that supports healthy employment relationships greatly increases the chances issues will become apparent, while providing the tools and expertise to resolve them in ways that benefit all parties. You’re also much more likely to be able to settle any dispute that arises, before the claim ends up at the Employment Relations Authority (ERA).

Get your HR properly sorted

Defending personal grievance claims can get expensive and soak up a lot of time. While employees have the right to raise grievances against their employer, ensuring your people management procedures are robust and legally compliant can lower the risk of claims and other legal disputes, as well as improving your odds of settling disputes before they reach the ERA.

If you want to understand more about lowering the risk of personal grievance claims, read our blog post.

To learn about how MyHRs expert human advisory and advanced software can support your business and employees, get in touch with our team.