Employment law has its own set of institutions. If you are an employer or employee dealing with a workplace issue, it can be difficult to know who does what, where to go, and what each organisation can actually decide.
This article explains the main employment institutions in New Zealand, what they cover, and how they fit together. This is the first article in our four-part series about New Zealand’s employment institutions.
The Ministry of Business, Innovation and Employment
The Ministry of Business, Innovation and Employment (“MBIE”) is often the best starting point for anyone trying to understand a workplace issue.
Through the Employment New Zealand website, MBIE provides practical information about employers’ and employees’ rights and responsibilities. This includes information about employment agreements, remuneration, holidays and leave, disciplinary processes, restructuring, and ending employment.
MBIE’s helpline (0800 20 90 20) is also part of its employment problem service. It gives employers and employees a practical first point of contact about how to resolve employment problems. Information about how to contact MBIE is usually included in employment agreements under the required statement about how to resolve employment relationship problems.
MBIE also offers an Early Resolution Service, which is a free and informal phone-based service designed to help employers and employees resolve workplace issues early, quickly and informally.
Mediation Services
One of MBIE’s most important services is employment mediation. Mediation is often the first formal step in an employment dispute. Mediation is a voluntary process, although parties can also be referred or directed to attend mediation by the Employment Relations Authority or Employment Court.
Mediation is designed to help employers and employees resolve issues together. The mediator helps the parties talk through the issues, understand each other’s positions, and see whether a resolution can be reached. Mediation is confidential and without prejudice, which means that nothing said at mediation can be used against a party, for example, in any legal claim (there are some exceptions when mediation is used for collective bargaining). Whilst rarely used, the parties can also agree in writing for the mediator to make a recommendation or a binding decision.
If an agreement is reached, it can be recorded in a binding settlement document signed by the parties, usually called a record of settlement. MBIE mediators can also formally certify records of settlement, including where agreement has been reached by parties privately without using mediation.
MBIE mediation is free. However, if you are represented at mediation there may be costs to you for that representation. Timeframes to arrange mediation can vary depending on location and demand, and can take up to 4-8 weeks to arrange (ongoing employment relationships are given priority). In 2024/2025 there was a 9.1% increase in applications for mediation.
Mediation can take place in person or by Zoom, which can make it easier for parties in different locations to participate. Usually a mediation lasts around 3-4 hours but it can be shorter or longer. Settlement rates at mediation were around 66% last year according to MBIE’s 2024/2025 report.
There are also private mediation options. Private mediation is usually faster and can often be arranged within a couple of weeks, but there is cost involved in engaging the mediator.
Depending on the nature of the dispute, other resolution processes may also be appropriate, including facilitation, arbitration, restorative processes, and Hohou i te Rongo, a tikanga-based resolution process using principles and values from Te Ao Māori.
Employment Relations Authority
The Employment Relations Authority is the main specialist body for employment disputes in New Zealand. It is less formal than a court and matters are decided by an Authority Member. There are currently 20 Authority Members listed on the Authority’s website, based in Auckland, Wellington and Christchurch. In 2025 the Authority heard matters in twenty five locations around New Zealand.
The Authority deals with a wide range of employment matters, including personal grievance claims, unpaid wages or holiday pay, disputes about employment agreements, breaches of good faith, questions about whether someone is an employee or an independent contractor, and compliance with minimum employment standards.
A party can make an application to have the matter decided by the Authority by filing relevant documents and paying a small fee.
The Authority is generally required to refer parties to mediation if they have not already attended. In some cases, it may refer parties to mediation a second time, even if an earlier mediation was unsuccessful.
If a matter is not resolved at mediation, or if mediation is not appropriate, the Authority can investigate the matter, hold an investigation meeting, hear from witnesses, consider documents, and issue a written decision (called a determination).
The Authority is designed to be more accessible than the courts. However, it is important to note that it is still a legal process, and its decisions can have significant financial and practical consequences. Authority decisions are available publicly and can be reported in the media.
Employment Court
The Employment Court is a specialist court. It can hear matters relating to employment issues and has a status similar to the High Court. There are currently six Employment Court Judges based in Auckland, Wellington and Christchurch. In 2025 they heard matters in ten locations around New Zealand.
Most employment disputes do not start in the Employment Court. They usually go first to mediation and then, if they are not resolved, to the Authority. If a party is unhappy with an Authority determination, they may challenge the whole determination or specific issues in the Employment Court. In that situation, the Court looks at the matter or issue again and makes its own decision.
Some matters can start directly in the Employment Court without first going to the Authority, including certain matters relating to industrial action (strikes and lockouts), employee-status declarations, claims about certain statutory powers or offences, freezing or search orders, and enforcement of certain orders.
The Employment Court can also hear matters that are referred or removed from the Authority. This means that, in some cases, a matter may begin in the Authority but later be transferred to the Court.
Because it is a court, the process is more formal than the Authority. Evidence, pleadings, legal argument, and procedural rules play a larger role. Usually matters are decided by one Judge, but in important matters the Chief Judge can decide that a “full court” of at least three Judges may hear a matter. The Employment Court’s decisions are important not only for the parties involved, but also because they help guide how employment law is applied in future cases.
Court of Appeal and Supreme Court
Some employment cases can go beyond the Employment Court. Appeals may be available to the Court of Appeal and, in limited cases, the Supreme Court.
In most cases a party cannot automatically appeal a decision to these courts. They need to apply for leave, which means the higher court must first decide whether the issue is important enough to justify the higher court hearing it, for example a matter of wider public significance.
A recent example is the Uber case about whether particular drivers were employees or independent contractors. That case ultimately reached the Supreme Court because it raised important questions about how employment status should be assessed in modern working arrangements. For further information on this case, you can refer to our previous article, “Four Uber Drivers Found to Be Employees: Supreme Court Dismisses Uber’s Appeal.”
Other institutions to be aware of
Alongside the main institutions discussed above, other bodies can also be relevant in employment matters.
Labour Inspectors sit within MBIE. They have a broad range of statutory powers and their focus is on enforcing minimum employment standards, including minimum wage, holidays and leave, wage and time records, and written employment agreements. In 2025, there were 13 substantive determinations in the Authority on matters brought by Labour Inspectors relating to breaches of minimum employment standards, including migrant exploitation.
WorkSafe New Zealand is a Crown entity and New Zealand’s independent health and safety regulator. It does not form part of the ordinary personal grievance process, but it may become involved where a workplace issue also raises health and safety concerns.
Other relevant institutions include: The Office of the Privacy Commissioner,which deals with privacy matters; the Human Rights Commission, whichcan assist with complaints involving discrimination or sexual or racial harassment; and the Ombudsman, including for matters relating to protected disclosures (whistleblowing complaints).
Key Takeaway
New Zealand’s employment institutions each have different roles. Some provide information, some help parties resolve disputes, some enforce minimum standards, and some make binding legal decisions.
Understanding which institution does what can save time and cost, reduce confusion, and help employers and employees choose the right pathway from the start.
If you are unsure which process applies, it is worth getting advice early. The right first step can make a significant difference to how quickly and effectively an employment issue is resolved. If you would like advice about any employment issues, please contact the Black Door Law team by:
Next in the series: The Employment Relations Authority’s 2025 report
In the next article in this series, we will take a closer look at the Employment Relations Authority and its 2025 report. Considering key trends and statistics from 2025 report, including the increase in applications, the types of claims being brought, referrals to mediation, compensation awards, and reinstatement outcomes. Come back and take a look.
Disclaimer: This information is intended as general legal information and does not constitute legal advice.
