Skip to content
Get in touch
Unjustified Dismissal New Zealand - You're Fired

Unjustified Dismissal

What It Is

An unjustified dismissal occurs when an employer ends your employment without a genuine and sufficient reason or fails to follow a fair and reasonable process.

Your Rights and the Law

  • Under the Employment Relations Act 2000 (ERA 2000), the question is whether what the employer did and how they did it were what a fair and reasonable employer could have done in all the circumstances (ERA 2000, s 103A).
  • Dismissal can be substantively unfair (no valid reason) or procedurally unfair (flawed process). Either can make it unjustified.
  • ERA 2000, s 103(1)(a) – You may raise a personal grievance if you have been unjustifiably dismissed.
  • ERA 2000, s 103A – Sets the legal test of justification.
  • ERA 2000, s 4 – Both parties must act in good faith, including openness, honesty, and consultation.
  • The Court of Appeal in A Ltd v H [2016] NZCA 419 confirmed that the ERA 2000’s test requires a holistic assessment of fairness and reasonableness, not a checklist of procedural perfection.

Process (How a Generally Case Proceeds)

  1. Collect Evidence – Gather dismissal letters, emails, performance reports, and meeting notes.
  2. Raise Personal Grievance – Must be raised in writing within 90 days of dismissal.
  3. Mediation – MBIE provides free mediation for early resolution. The process is voluntary and both parties must agree to attend. Most cases reach resolution at Mediation.
  4. Employment Relations Authority Investigation – If unresolved, a Statement of Problem is filed; the Authority investigates and issues a written determination.
  5. Employment Court Appeal – Possible for errors of law or procedure.

Potential Outcomes / Remedies

  • Reimbursement of Lost Wages – Usually up to 3 months’ pay (s 128 ERA 2000), but can be extended depending on the circumstances.
  • Compensation – For hurt, humiliation, and injury to dignity (s 123(1)(c)(i)).
  • Reinstatement – Primary remedy under s 125 ERA 2000 if practicable.
  • Interest and Costs 
  • Penalties – May be imposed for deliberate bad-faith breaches (s 4A ERA 2000).

Take Action Today

If you believe you were unfairly dismissed, you don’t have to face it alone. Get in touch with us to arrange a no-obligation consultation about your situation. We’ll assess your case, request your employment file, and help you pursue the justice and compensation you deserve.