In our previous article, Employment Relations Authority 2025 Report, we looked at the latest figures, determination statistics, and trends outlined in the Employment Relations Authority 2025 Report. We saw that applications to the Authority have increased, personal grievances remained the predominant types of application, and the number of matters referred to mediation have also increased.
As outlined in our first article in this series, matters resolved by determination in the Authority can be challenged to the Employment Court. This makes up the majority of the Court’s new proceedings with around 150/233 new matters being challenges from the Authority. Alternatively, matters can be removed to the Court without going through the Authority process if they meet one of the legal requirements for removal, which only applied to 15 matters in 2025.
The Employment Court has now released its inaugural Annual Report for 2025. This article reports on the key statistics and trends from that report and analyses its potential implications for employment law generally.
Employment litigation at 10-year high
The Court received 233 new substantive (i.e. not preliminary or interlocutory) cases in 2025, up from 201 in 2024, which reflects approximately a 16% increase. This is the highest level in 10 years between 2015 and 2025.
The Court specifically notes an upswing in compliance actions, proceedings against third parties, and freezing-order applications. This can be contrasted with the Authority, which primarily deals with resolving personal grievances.
The Court disposed of 213 substantive cases in 2025, and reported that 2025 is the second successive year in which new business exceeded disposals. The average number of days between filing and disposal was 163 days, which is just over 5 months. Whilst this does not demonstrate a significant backlog of cases, it does show that there will be mounting pressure on the system if new business continues to increase, and litigants may have to wait the better half of a year for judgment. The report showed that in 2025, 76% of judgments were delivered within one month, and 93% of judgments were delivered within three months.
Increase in courtroom activity
The Court reported a sharp increase in hearings. There were 124 hearing events in 2025, up from 81 in 2024, which is an increase of 53%. Substantive hearings also increased from 52 to 94 between 2024 and 2025, which is an increase of approximately 81%. This shows that a significant number of disputes are being formally tested before the Court rather than being resolved earlier. However, there were no Full Court hearings in 2025 despite there being 4 in 2024, and 2 in 2023.
Triaging of matters
The Court is increasingly triaging cases towards early alternative dispute resolution. Once a matter is assessed and allocated to a case officer and a Judge, the Court gives consideration as to whether the matter can be “fast tracked” to a hearing, to alternative dispute resolution, or to a case management conference. The Court reports that cases involving compliance issues, reinstatement, and ongoing employment relationships are given priority.
The Court is required to consider directing parties to mediation; however, they have reported that the preference is generally to attend a Judicial Settlement Conference (“JSC”) with a Judge. In 2025, 34 cases proceeded to a JSC with over half of them resolving on the same day as the JSC, and many more resolving prior to a hearing. Although, the Court has noted a reduction in cases settling on the day of the JSC which mirrors a reduction in settlements at mediation over the same period. If settlement is not reached at the JSC, a different Judge will conduct the substantive hearing and will receive no information from the JSC.
Costs and self-representation remain of concern
The Chief Judge, Christina Inglis, described cost as a significant barrier for litigants and reported that the number of self-represented litigants has continued to increase year on year. The Court has developed a mock-Court video called ‘What to Expect in Court’ to assist self-represented litigants and non-legally qualified representatives navigate the Court system (the video is available on its website at: www.employmentcourt.govt.nz/info-guidance/during-a-hearing/). The Chief Judge has advocated for systemic recalibration, including simplified tracks for smaller claims, active case management, and plain language resources.
The suggestion of reform is particularly relevant in light of the current Government’s review of employment dispute resolution processes. Whether the specific measures identified by the Chief Judge are ultimately adopted may depend on the outcome of that review and any resulting policy or legislative decisions (and potentially the outcome of this year’s election). However, there may be further measures the Court will take internally to adapt its processes and procedures to reduce unnecessary cost where possible.
Key Takeaway
The key takeaway from the report is that employment litigation continues to increase in the Courts, and once filed, matters are more likely to proceed to a substantive hearing. This may reflect the positional attitudes adopted by the parties, and a lack of incentive to settle, by the time a matter escalates from the Authority to the Court. These disputes can take many months to resolve in the Court and can be very costly for the parties involved. Proactive engagement with alternative dispute resolution to try to mitigate time and costs is therefore critical as it will not be automatically offered by the Court. Finally, it is always important for potential litigants to receive robust legal advice, risk assessments on their prospects at litigation in the Court, and indications of the likely costs to factor into their decision-making.
If you would like advice about any employment issues, including representation in the Employment Court, please contact the Black Door Law team by:
Disclaimer: This information is intended as general legal information and does not constitute legal advice.
