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Unjustified Disciplinary Action NZ

Unjustified Disciplinary Action

What It Is

An unjustified disciplinary action occurs when an employer issues a warning, suspension, demotion, or other penalty without a fair reason or fair process.
Even if you aren’t dismissed, you may still raise a personal grievance for unjustified disadvantage under ERA 2000 s 103(1)(b) if the process or outcome unfairly affects your dignity, reputation, or employment prospects.

Examples include:

  • Being disciplined for unproven or exaggerated allegations.
  • Receiving a warning without being heard or shown the evidence.
  • Employer failing to allow representation or impartial investigation.
  • Being suspended or demoted without justification.

Your Rights and the Law

  • ERA 2000 s 103(1)(b) — Personal grievance may be raised where disciplinary action creates an unjustified disadvantage.
  • ERA 2000 s 103A — Sets the fair and reasonable employer test, requiring fair procedure and genuine consideration.
  • ERA 2000 s 4 — Duty of good faith: employers must be open, communicative, and responsive in disciplinary processes.
  • Dryden v Radio Network Ltd [2001] NZEmpC 6 — Early leading case confirming that unfair warnings or investigations may constitute unjustified disadvantage.
  • GF v Comptroller of the New Zealand Customs Service [2023] NZEmpC 101 — Confirmed that failure to consult or disclose evidence during disciplinary processes breaches ERA 2000 s 103A.
  • X v Auckland Council [2024] NZERA 201 — Found dismissal and disciplinary steps invalid where employee was denied access to the material relied on against them.

Process (How a Case Generally Proceeds)

  1. Employer Investigation — must clearly set out allegations, share evidence, and give you time to respond.
  2. Opportunity to Respond — you must be allowed representation and a fair hearing before any decision.
  3. Decision and Communication — the employer must genuinely consider your response and explain the outcome.
  4. Raising a Grievance — if process or outcome is flawed, raise within 90 days under ERA s 114.
  5. Mediation – The Ministry of Business, Innovation & Employment (MBIE) provides free mediation to seek early resolution. The process is voluntary and both parties must agree to attend. Most cases reach resolution at Mediation.
  6. Employment Relations Authority Investigation – If unresolved, a Statement of Problem is filed; the Authority investigates and issues a written determination.
  7. Employment Court Appeal – Possible for errors of law or procedure.

Potential Outcomes / Remedies

  • Rescission of warnings or removal of disciplinary records from employment file.
  • Compensation for humiliation, loss of dignity, or injury to feelings (ERA s 123(1)(c)(i)).
  • Lost wages if demotion or suspension caused financial loss (s 128).
  • Penalties for bad-faith conduct (s 4A).
  • Reinstatement or correction of records.

Take Action Today

If you’ve been warned, suspended, or disciplined without proper process, you may have a valid claim for unjustified disciplinary action under the ERA 2000. Get in touch with us to arrange a no-obligation consultation about your situation. We’ll assess your case, explain your options, help gather evidence, request your employment file, and help you pursue the justice and compensation you deserve.