In any relationship, even a good one, sometimes a person feels they are being treated unfairly. This can also be the case in a business relationship. A personal grievance is a statutory procedure for employees to challenge a dismissal or treatment they consider to be unjustified.
Dealing with employee grievances is an unwelcome part of being an employer. However, when a grievance crops up, it is recommended you resolve the grievance as quickly as possible. That isn’t always possible, but here are some tips for when it is.
The first steps
The complaint doesn’t have to be in writing and can be raised if the employee has made it reasonably clear in enough detail to their employer that they have a personal grievance as set out in the Employment Relations Act. If the employee does raise it verbally, however, the employer should take notes to avoid a dispute later.
An employee has a right to raise a personal grievance within 90 days of when the grievance occurred or came to their attention. However, the employer may consent to a personal grievance being raised after that time. If the employer doesn’t consent, the employee may apply to the Employment Relations Authority to be allowed to raise the personal grievance after the 90 day period if they have exceptional circumstances.
Where there is a complaint that relates to sexual harassment, the employee has 12 months to rase a personal grievance. For all other personal grievances, the time to notify the employer stays the same at 90 days.
The employee should clearly outline the reasons why they believe they have a grievance in sufficient detail for the employer to be able to respond.
Some complaints that can be raised by bringing a personal grievance include unjustified dismissal or disadvantage, discrimination, sexual or racial harassment, or duress due to union / non-union issues.
What happens if I can’t resolve the grievance?
An employer and their employee should always try to resolve the matter themselves. They should both check the employee’s employment agreement for the process to follow, and the available services that can help. In some cases, both the employee and the employer may wish to seek professional advice on how to deal with the specifics of the case.
Free alternative dispute resolution in the form of mediation is available through the Ministry of Business, Innovation and Employment if the employer and the employee cannot put their differences aside. If the matter still cannot be resolved, the employee can lodge a claim with the Employment Relations Authority.
If an employee is successful in a personal grievance for unjustified dismissal, they may be reinstated if they want to be, unless the Employment Relations Authority decides it is not practical. Other remedies include reimbursement of lost wages, compensation for humiliation or loss of a monetary or non-monetary benefit, or representative costs. If an employer breached the law, they may also be subject to penalties.
Unjustified dismissal is arguably the most common personal grievance, and employers need to take steps to minimise the risk to their business.
An employer should only dismiss an employee on reasonable grounds after a fair process, and make sure the outcome is not decided in advance. The reasons for dismissal must be in writing, unless it is under a trial period. The contractual notice of the affected employee needs to be given unless they are being dismissed without notice for serious misconduct.
If an employer takes all these steps and keeps appropriate records, it can help avoid personal grievances escalating. Ultimately, employers should take any concerns seriously, gather all necessary information, and work with their employees to try and resolve personal issues as soon as possible.
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This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.
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