A personal grievance is a procedure for an employee (or ex-employee) to challenge dismissal or treatment they consider to be unfair.
A personal grievance is raised if the employee has made it reasonably clear in enough detail to their employer they have a complaint they want addressed. Two common types of complaints that can be raised by bringing a personal grievance are unjustified dismissal and unjustified disadvantage.
According to the Employment Relations Authority Annual Report there has been a substantial increase in the number of personal grievances raised.
- Around a 20% increase in applications filed with the Authority in the last year (from 2024 – 2025)
- A 45% increase in applications filed with the Authority across a two year period (applications filed in 2023, vs applications filed in 2025)
This increase in workplace disputes highlights how employees are more motivated to elevate their personal grievance matter if required. So business owners need accessible support from claims specialists more important than ever.
Unjustified dismissal
An employer should only dismiss an employee on reasonable grounds and after a fair process. An employee may be able to lodge a personal grievance claim if an employer does not do the following when terminating their employment:
Act in good faith
Acting in good faith means both the employer and employee should be honest, fair and transparent in their dealings with each other. They should listen to one another and respond appropriately in a timely manner.
Have a good reason
A good reason for dismissal must be genuine and reflect what a fair and reasonable employer could have done at the time of the dismissal in the circumstances. Examples of good reasons include serious or repeated misconduct.
Follow a fair and reasonable process
Procedural fairness is equally important – an employer should fully investigate any concerns and then raise them with the employee allowing a reasonable time to respond. The Employee must be given the opportunity to seek independent advice and have a representative or support person present if they prefer. The employer should carefully and genuinely consider the employee’s responses with an open mind and take into account any extenuating circumstances before making a decision.
Make sure the outcome is not pre-determined
You must be able to prove, as the result of a complete and fairly conducted investigation, that you were justified in believing the misconduct occurred and that termination is a fair and reasonable outcome in the circumstances. Try to avoid bending the process and facts to meet a certain outcome.
Who is excluded from raising a personal grievance for unjustified dismissal?
Dismissal during a Trial Period: If the employee has been given notice of dismissal during a trial period, a personal grievance may not be raised for unjustified dismissal unless the trial period is not valid.
Dismissal of High-Income Earners - With effect from 21 February 2026, an employee earning $200,000 (or above) per annum would generally not be able to raise a personal grievance for unjustified dismissal.
However, an employer and employee may agree in the employment agreement, that the employee is not excluded from raising a personal grievance for unjustified dismissal.
Employees on existing employment agreements on 21 February 2026, who meet the remuneration threshold, will have up to 12-months to re-negotiate their agreements before the threshold for unjustified dismissal claims takes effect.
Keep in mind, however, that both of the above categories of employees may still raise a personal grievance in respect of an unjustified disadvantage or discrimination.
Unjustified disadvantage
Employers must not do something that affects an employee’s employment in a way that disadvantages them or affects their ability to do their job.
Examples of employees who have been ‘disadvantaged’ may include employees who have:
- been given a warning, suspended , or demoted,
- had hours of work or pay changed without consultation,
- been underpaid,
- been misled by their employer,
- not had the opportunity to respond to allegations against them,
- not had a safe workplace, or
- not been informed about proposals which may affect their employment.
A personal grievance claiming unjustified disadvantage generally concerns something an employee is entitled to under their employment agreement. An employer needs to ensure the actions they took are reasonable and justifiable in the circumstances.
BrightHR Software can help you keep track of your employees’ working hours, and corresponding pay and entitlement, by monitoring absences and shift schedules as employees clock in and out with Blip.
Blip sends reminders to, and notifications from employees in respect of clocking on and off so you can track time and location. It also allows employees to log breaks. You can then generate a report that will show the number of shifts and hours worked, breaks and their duration and the total number of hours worked excluding those breaks to help with payments.
How Peninsula can help you
Peninsula may be able to assist you if you are currently subject to an unjustifiable dismissal, unjustified disadvantage or other type of personal grievance claim, and assist you in shoring up your business’ policies and processes to better protect your business and your people in the event of any future personal grievance claim.
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.