When people think about unfair treatment at work, they usually think about being fired.
But New Zealand employment law also protects you from being treated badly while you’re still employed — this is called “unjustified disadvantage,” and it’s one of the most misunderstood areas of employment law.
What is unjustified disadvantage?
Under the Employment Relations Act 2000, your employer must act as a fair and reasonable employer would in all their dealings with you. If they don’t — and it causes you some kind of disadvantage — you may have a personal grievance, even if you haven’t lost your job.
“Disadvantage” is broader than most people expect. It’s not just about pay or promotion. It can include things like:
- Being demoted or having your duties significantly changed without good reason
- Being excluded from training, meetings, or opportunities other staff get
- Being subjected to unfair disciplinary action, even if you weren’t dismissed
- Having your hours cut or your role changed in a way that damages your career or reputation
- Being bullied, harassed, or targeted by a manager or colleagues, where the employer failed to act
- Suspension without proper process or justification
How is it different from unjustified dismissal?
Unjustified dismissal is about losing your job. Unjustified disadvantage is about everything short of that — the ongoing relationship where something has gone wrong, but you’re still employed. You can raise a disadvantage claim while you’re still working for the employer, and in many cases, that’s exactly when it matters most: while there’s still a working relationship worth protecting.
What the law actually requires
The test the Employment Relations Authority and Employment Court apply is whether the employer’s actions were what a “fair and reasonable employer could have done in all the circumstances.” This covers both:
- Substantive fairness – was the decision itself reasonable?
- Procedural fairness – did the employer follow a fair process, including proper consultation, investigation, and a genuine opportunity for you to respond?
Even if an employer had a legitimate reason for a decision, they can still be found to have acted unjustifiably if they didn’t follow a fair process in reaching it.
What can you do about it?
If you believe you’ve been treated unfairly, there are strict time limits — generally, you must raise a personal grievance within **90 days** of the disadvantage occurring, unless there are exceptional circumstances.
Steps typically involve:
- Raising the issue formally with your employer in writing
- Attempting to resolve it directly, often through mediation via the Ministry of Business, Innovation and Employment (MBIE)
- If unresolved, filing a claim with the Employment Relations Authority
Getting advice early matters
Disadvantage claims can be harder to identify than dismissal claims, because the harm builds up over time rather than happening in one clear moment. Getting advice early — before the 90-day window closes — gives you the best chance of protecting your position.
If you think you’ve been treated unfairly at work and you’re not sure whether it amounts to unjustified disadvantage, it’s worth getting advice specific to your situation.
This article is general information only and does not constitute legal advice. If you are facing a commercial contract dispute, please get in touch to discuss your specific circumstances.