In our previous article, Employment Institutions – Who Does What?, we looked at the main employment institutions in New Zealand and the different roles they play in resolving workplace issues.
This article is the second in this series and narrows the focus to the role of the Employment Relations Authority by looking at its 2025 Annual Report. It looks more closely at what the Authority is doing in practice and what the latest figures, determinations, and trends show.
The overall picture is clear. Applications are increasing, personal grievances remain the most common type of claim, and compliance with minimum employment standards continues to be a key issue.
Changes in Authority membership
The Authority also experienced significant membership change in 2025. Seven members departed and five new members commenced their terms, compared with three departures and no new members commencing in 2024. This increased total membership turnover from three members in 2024 to 12 in 2025.
Applications continuing to increase
The most notable statistic in the 2025 report is the continued increase in applications to the Authority.
In 2025, the Authority received 3,070 applications, up from 2,745 in 2024. This is an increase of about 12% in one year.
The increase is even more significant when viewed over a longer period. In 2022, the Authority received 1,970 applications. By 2025, that number had risen to 3,070. That is an increase of about 56% over three years.
Auckland continues to receive the highest number of applications. In 2025, the Auckland office received 1,894 applications, compared with 510 in Wellington and 666 in Christchurch. This means Auckland received more applications than Wellington and Christchurch combined.
The Chief of the Authority noted that the increase in applications was relatively uniform across the offices, although slightly higher proportionately in Auckland.
The Authority issued 852 determinations, up from 781 in 2024, with 98% being issued within three months of the investigation meeting or the provision of the last information (an increase from 96% in 2024).
Types of claims
Personal grievances remained the most common type of application before the Authority in 2025, and the overall mix of claim types appears to have remained broadly consistent.
The Authority recorded 2,373 personal grievance claims in 2025. Within that category, unjustified dismissal remained the most common claim at 1,680 claims, which included 408 constructive dismissal claims (almost a quarter of all dismissal claims). Claims for unjustified disadvantage followed closely behind with 1,474 claims (most cases will involve multiple types of claims for example, unjustified dismissal and unjustified disadvantage). Other types of applications include breach of legislation (1,835 claims), arrears (1,027 claims), breach of good faith (992 claims), breaches of employment agreements (537 claims), other categories (320 claims) and breaches of record of settlements (161 claims).
The broader trend is that the Authority continues to deal far more often with dismissal and disadvantage claims than with other personal grievance categories. By contrast, discrimination (102 claims), sexual harassment (33 claims), and racial harassment (15 claims) remained comparatively uncommon.
Mediation
The number of matters referred or directed to mediation also increased in 2025.
In 2025, 1,946 matters were referred or directed by the Authority to the Employment Mediation Service. This is up from 1,624 in 2024, an increase of about 20%. The increase in matters referred to mediation is higher compared to the increase in Authority applications received. This may indicate that more matters are reaching the Authority before mediation has been attempted.
As discussed in our previous article, mediation is often the first formal step in an employment dispute, and the 2025 report reinforces how important that stage remains. It is important to consider mediation carefully, and to ensure it has been properly explored before making an application to the Authority, because parties who have not already attended mediation are very likely to be referred or directed to it.
Taking that step early can be a crucial time and cost saver, as proceeding through an Authority application only to be sent back to mediation can add delay, increase legal and preparation costs, and push resolution further away (if the matter ultimately has to be determined by the Authority).
Compensation awards
The Authority recorded 231 applicants who were awarded compensation for a successful personal grievance in 2025. This is up from 200 applicants in 2024 and 195 applicants in 2023.
In 2025, compensation awards ranged from $1,000 to $105,000.
Using the banding system of Band 1 (low-level harm where awards are between $0 to $12,000), Band 2 (mid-level harm where awards are between $12,000 to $50,000), and Band 3 (high-level harm where awards are over $50,000), the 2025 figures indicate that a substantial number of awards fell within Band 2. Only 18% of awards were of or over $25,000, with around 40% being between $0 – $20,000.
The highest award arose in Bowen v Bank of New Zealand [2025] NZERA 380, where the Authority awarded compensation totalling $105,000 (this award was split as $45,000 for retaliation and $60,000 for unjustified dismissal). The employee was also awarded lost remuneration, bonuses, KiwiSaver contributions, medical costs, and special damages.
For employers, this reinforces the potential cost of getting employment processes wrong. For employees, it confirms that the Authority can award meaningful compensation where a personal grievance is established and the evidence supports the impact claimed.
Reinstatement applications increased
Reinstatement remains an important remedy in dismissal cases, and the 2025 figures show a significant increase in reinstatement applications.
In 2025, the Authority recorded 40 interim reinstatement determinations, compared with 22 in 2024 and 13 in 2023. Of the 40 interim reinstatement determinations in 2025, 12 were successful (30%) and 28 were unsuccessful (70%).
Permanent reinstatement determinations remained steady at 19 in 2025, the same as 2024. Of those, 6 were successful (32%) and 13 were unsuccessful (68%). It will be interesting to see how these statistics change following the 2026 amendments to the Employment Relations Act, which limit the availability of reinstatement in some cases.
Facilitation
The 2025 report also recorded a noticeable increase in facilitations. In 2025, the Authority recorded 16 facilitations, up from 10 in 2024. Recommendations were issued in 7 of those matters, compared with 6 in 2024.
Overall, the 2025 Annual Report shows that the Authority is dealing with increasing demand while continuing to play a central role in unresolved employment disputes.
Read alongside our earlier article on New Zealand’s employment institutions, this report helps show where the Authority sits in practical terms: it is not just one institution in the system, but a central decision-maker in unresolved employment disputes, particularly after mediation has been attempted or directed.
For employers, the key takeaway is prevention. Good employment documentation, accurate records, fair process, and compliance with minimum employment standards remain essential.
For employees, the report confirms that the Authority continues to be an active forum for resolving workplace disputes and enforcing employment rights. However, evidence and timing remain important.
If you would like advice about any employment issues, please contact the Black Door Law team by:
Disclaimer: This information is intended as general legal information and does not constitute legal advice.
