So, what complicates things?
The key issue lies in the ERA's "exceptional circumstances" clause.
If an employee can show that exceptional circumstances prevented them from raising a grievance within the 90 days, the Employment Relations Authority (ERA) may allow it.
Factors like severe illness, misinformation from the employer, or other significant barriers could extend the timeframe. Employers banking solely on the 90-day limit risk being blindsided.
When has this happened?
Several New Zealand cases highlight how this plays out.
Employees have successfully argued they were unaware of their right to raise a grievance because their employer didn’t inform them properly. Others have cited medical issues that delayed their actions.
Courts assess each case carefully, but the common theme is this: if the delay seems reasonable and justifiable, the grievance might proceed.
NZ businesses: How we can help prevent these situations
- Inform clearly: Always provide employees with written notice of their right to raise a PG and the 90-day limit. Transparency can shield you from claims of misinformation.
- Keep thorough records: Document conversations and correspondence about resignations, dismissals, or disciplinary actions.
- Act in good faith: Engage openly with employees. Attempts to brush off issues can backfire if a grievance arises later.
- Monitor exceptions: Be aware of situations where exceptional circumstances could apply, such as an employee experiencing serious health issues.
The bottom line?
While the 90-day limit provides a guideline, it’s not an absolute shield. New Zealand employers should remain vigilant, maintain clear communication, and document key employment actions to mitigate risks.
Thinking you’re in the clear just because the clock runs out? Better to play it safe and stay prepared.
Note: This information is based on official details from New Zealand Legislation and Employment New Zealand, and is subject to change. Always refer to the latest guidelines for the most accurate information. Visit New Zealand Legislation here and Employment New Zealand here.