Any breakdown in the employment relationship can be expensive, and counterproductive. When a breakdown stretches from a miscommunication, or any other minor problem, to a dispute there are some actions you can take to minimise its damage. Every action between you and your employees should be in good faith, and dispute resolution or conflict resolution are no exception.
What is informal conflict resolution?
If the issue which has caused a dispute is a minor one, or is unlikely to happen again, you may find that a simple conversation can help. Where informal action does not work, formal action can be such as formal warnings or disciplinary action.
Conflict resolution through informal action is always the preferred option as it tends to be quicker, cheaper and will likely not damage the relationship between employees and employers. There are some basics to be incorporated into any informal action, such as being honest and upfront in any conversation with the employee and treating staff consistently and without favouritism.
More importantly, the first steps in conflict resolution should be a discussion initiated by the employer to resolve the issue. At this stage, clarifying what the problem is and trying to resolve it in a consultative manner will be key to success.
In the event that the dispute has not been resolved through informal methods, there may be a need for mediation.
Dispute resolution and mediation services
Dispute resolution can be difficult to manage when the disputing parties are both directly involved. To help in conflict resolution, the Ministry of Business, Innovation, and Employment provides free mediation services to employers and employees. There is a formal process to be followed which starts with completing a Request for Mediation form. After the form has been lodged, the parties will agree on a date for a mediation meeting and which will take place in an environment both parties are comfortable in. Often mediation will take place offsite or online.
Successful mediation will end in a record of settlement which will be a written agreement of what has been decided upon. This will be checked by Employment Mediation Services, which is a government representative, and signed off by all parties if agreed to.
What happens if mediation does not work?
There are several cases when employees and employers are unable to reach agreement and a dispute escalates beyond mediation. If this happens the dispute will likely head to the Employment Relations Authority, Employment Court, or in some cases the Human Rights Review Tribunal.
What to expect in the Employment Relations Authority (ERA)
Following an application being lodged in the ERA, the respondent in the case will be sent a copy with all the claims and facts presented for their response. From here the respondent (normally the employer) has 14 days to provide a Statement in reply. This statement is required to be a plain language description of the problem, their version of the facts and any steps they have already taken to address the problem.
The ERA follows a strict formal process, and with its independent nature, intends to help the parties resolve any dispute swiftly and in the most cost-effective way possible. If the dispute has progressed to this stage, the ERA will hold an investigation meeting and determine all of the facts with the parties having a final opportunity to comment on the evidence. The final step in the process is a decision by the ERA following a presentation of all the facts.
ERA proceedings will often be expensive, not only in terms of any financial cost of hiring a lawyer, but also in the length of time taken to resolve any issue.
What to expect in the Employment Court
The Employment Court will hear claims from employees and employers on a number of areas of dispute. In proceedings in the Employment Court, often it will be the employer defending against a claim from a former employee. In which case, there are some basics needed in the statement of defence:
- full name, address and occupation of each party
- specifically state whether the defendant admits or denies the allegations in the statement of claim
- provide sufficient facts (such as time, place, names) to fully inform the court of the nature of the allegations and defence
- acknowledgement that the statement is being filed personally, and a service address of where the court can serve future papers as required
- signature and date
The process in the Employment Court is strict and there are clearly defined timeframes of which both the defendant and the plaintiff must comply.
What to expect at the Human Rights Review Tribunal
In a similar manner to both the ERA and the Employment Court, the Human Rights Review Tribunal works on a claim-based system with many employers becoming involved after an employee has made a claim. Typically, in this tribunal the claims will centre around an allegation of discrimination or bullying, where a former employee feels they were treated unfairly based on a prohibited ground of discrimination such as their ethnic background.
This Tribunal will also be expensive if employers are found to have acted improperly and similarly again these proceedings will take a long time to be addressed. Employers should ensure policies and procedures are in place to manage employees properly so they don’t end up in this tribunal.
Create fair workplaces with Peninsula
From recruitment to performance management and dispute resolution, Peninsula deals with all aspects of the employee lifecycle. Our team is available 24/7 for our clients, supporting them in all matters relating to employment relations and health and safety. Call us on 0800215031 to learn more.
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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