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When can you take Legal Action Against your Employer?

While most workplace issues can be resolved through mediation or internal processes, there are some situations where it becomes necessary to take legal action against your employer. 

While most workplace issues can be resolved through mediation or internal processes, there are some situations where it becomes necessary to take legal action against your employer. 

As an employee, you have strong legal protections under the Employment Relations Act 2000. Understanding your rights and knowing when to pursue legal action can empower you to address unfair treatment, unsafe conditions, or breaches of your employment agreement. In this article, we’ll guide you through the key scenarios in which you can, and should take legal action against your employer. 

 

Reasons for Legal Action 

1. Unjustified Dismissal 

An unjustified dismissal occurs when an employer fires an employee without following a fair and reasonable process as required under the Employment Relations Act 2000. You can take legal action if you believe your employer lacked a valid reason to dismiss you, and/or failed to follow a fair process. 

Some examples include: 

  • Dismissal without warning or explanation. 

  • Being fired for minor issues without a chance to improve. 

  • Redundancy that was ingenuine, or lacked proper consultation. 

  • Lack of written notice. 

  • Lack of proper investigation. 

2. Unjustified Disadvantage 

An unjustified disadvantage occurs when an employer takes action that negatively affects an employee’s employment conditions, benefits, or work environment without a fair and proper reason. This is covered in the Employment Relations Act 2000, which requires employers to act in good faith. 

Examples include: 

  • Unfair changes to your job responsibilities, hours, or pay. 

  • Being excluded from work opportunities. 

  • Retaliation after raising a complaint. 

3. Workplace Bullying and Harassment 

If bullying or harassment at work creates a health and safety risk, you may have grounds for legal action, especially if your employer fails to address the issue after being informed. 

Examples include: 

  • Verbal abuse, threats, or intimidation. 

  • Sexual harassment or abuse. 

  • Social exclusion or undermining behaviour. 

4. Breach of Employment Agreement 

Legal action is warranted if your employer violates the terms of your employment agreement, or fails to meet minimum employment standards. 

Examples include: 

  • Unpaid wages, holiday pay, or overtime. 

  • Breach of agreed work hours or conditions. 

  • Failure to provide proper notice for termination. 

5. Health and Safety Violations 

Employers have a legal obligation under the Health and Safety at Work Act 2015 to provide a safe working environment. If they fail to do so and you suffer harm or risk, legal action may be justified. 

Examples include: 

  • Unsafe work conditions due to faulty machinery and equipment. 

  • Failure to address previously reported hazards. 

  • Ignoring mental health risks like extreme workplace stress or bullying. 

6. Discrimination 

It is unlawful for employers to discriminate against employees based on race, gender, age, disability, religion, or other protected characteristics under the Human Rights Act 1993

Examples include: 

  • Denying promotions based on age or gender. 

  • Refusing reasonable accommodations for disabilities. 

  • Harassing someone due to their race, gender, or beliefs. 

7. Constructive Dismissal 

If you resign due to unbearable work conditions created by your employer, it may be considered constructive dismissal – a form of unjustified dismissal. 

Examples include: 

  • Being forced to resign after bullying or harassment. 

  • Unreasonable workload or changes to job conditions without consultation. 

8. Privacy Breaches 

Employers must protect employee privacy under the Privacy Act 2020. You can take legal action if your personal information is mishandled. 

Examples include: 

  • Sharing confidential medical information without consent. 

  • Monitoring personal communications without justification. 

 

How to Take Legal Action 

1. Raise the Issue Internally – Start by discussing the problem with your manager or HR. Put concerns in writing, and request a meeting to resolve the issue. 

2. Seek Mediation – If the issue remains unresolved, contact Employment New Zealand, or a employment relations specialist, for mediation services. Costs of this are typically covered by the employer. 

3. Raise a Personal Grievance – For dismissal or disadvantage claims, submit a personal grievance within 90 days of the incident (12 months for sexual harassment). Provide written details of the grievance to your employer. 

4. Approach the Employment Relations Authority (ERA) – If mediation is unsuccessful, the ERA can investigate and make legally binding decisions. If unsatisfied with the ERA’s decision, you can escalate the matter to the Employment Court

5. Contact other Relevant Organisations – If your issue involves health and safety concerns, you can contact Worksafe New Zealand for advice. Furthermore, if you have been injured at work, it’s best to file a claim with ACC

 

Conclusion 

While no one expects to take legal action against their employer, it’s crucial to know your rights if you face breaches of your employment agreement. 

Thankfully, the law protects employees through clear processes for resolving disputes, such as mediation, personal grievances, and legal claims. There are many relevant services you can utilise for assistance and advice – remember that you aren’t alone in this! 

Mahi Law can Help! 

Our expert team will help you understand your employment rights, and pursue resolution (including compensation) through various channels, such as: Without prejudice negotiations, mediation, the Employment Relations Authority, or Employment Court if required. 

We also work on a no-win, no-fee basis – if we win your case, your employer covers the costs. 

Get in touch for a free consultation! You can fill out this form – or contact us at [email protected], or 0800 450 032. 

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