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employment

What is the Employment Relations Authority (ERA)?

Key Takeaway

The Employment Relations Authority (ERA) is an independent body established under New Zealand's Employment Relations Act 2000. Its primary role is to investigate and resolve employment relationship problems by making determinations based on the facts and law. It aims to provide speedy and informal resolution, encouraging mediation as a first step before formal investigation.

What is the Employment Relations Authority (ERA)?

The Employment Relations Authority (ERA) is an independent body in New Zealand responsible for investigating and resolving employment relationship problems. It operates as a first port of call for formal resolution when parties cannot agree through discussion or mediation.

The ERA was established by the Employment Relations Act 2000 to promote good faith in employment relationships and provide a specialist forum for resolving disputes [Source: Employment Relations Act 2000, s 156]. It is designed to be accessible and to provide a speedy, informal, and non-adversarial means of addressing issues [Source: Employment Relations Act 2000, s 157(a)].

Functions of the ERA

The primary function of the ERA is to investigate employment relationship problems and make determinations [Source: Employment Relations Act 2000, s 157]. An "employment relationship problem" is a broad term covering any problem arising from or relating to an employment relationship [Source: Employment Relations Act 2000, s 5(1)]. The ERA's functions include:

  • Investigating and determining employment relationship problems: This involves inquiring into the facts, hearing evidence from the parties, and applying relevant employment law [Source: Employment Relations Act 2000, s 157(b)].
  • Promoting resolution: While it has an investigative role, the ERA also encourages the resolution of problems by agreement, particularly through mediation, which is a mandatory first step for most employment relationship problems [Source: Employment Relations Act 2000, s 157(c); s 114].
  • Issuing determinations: Following an investigation, the ERA issues a written decision, known as a "determination", which sets out its findings and any orders made [Source: Employment Relations Act 2000, s 174].

Types of Employment Relationship Problems Heard by the ERA

The ERA has jurisdiction to hear a wide range of employment relationship problems. These commonly include:

  • Personal grievances: A "personal grievance" refers to a complaint by an employee that they have been treated unfairly or unlawfully by their employer. Common types include unjustified dismissal, unjustified disadvantage, discrimination, sexual harassment, racial harassment, and duress [Source: Employment Relations Act 2000, s 103].
  • Disputes about employment agreements: Problems concerning the interpretation, application, or operation of an employment agreement (individual or collective) can be referred to the ERA [Source: Employment Relations Act 2000, s 161(1)(b)].
  • Enforcement of minimum entitlements: The ERA can deal with issues relating to statutory minimum entitlements, such as minimum wage, holiday pay, and other leave entitlements [Source: Employment Relations Act 2000, s 161(1)(d), (e)]. This often involves the application of the Minimum Wage Act 1983 and the Holidays Act 2003.
  • Breaches of good faith: Claims that an employer or employee has breached their duty of good faith, which includes requirements to be active and constructive in maintaining a productive employment relationship and to deal with each other fairly [Source: Employment Relations Act 2000, s 4].

The ERA Process

Generally, the process for resolving an employment relationship problem through the ERA involves several stages:

  1. Mediation: Before an application can be made to the ERA, parties are usually required to attempt to resolve the problem through mediation services provided by the Ministry of Business, Innovation and Employment (MBIE) [Source: Employment Relations Act 2000, s 114]. Mediation is a voluntary process where an independent mediator helps parties reach a mutually acceptable agreement.
  2. Application to the ERA: If mediation is unsuccessful, either party may apply to the ERA for a formal investigation and determination [Source: Employment Relations Act 2000, s 133]. Applications must typically be made within three years of the date the problem arose, though personal grievances generally have a 90-day time limit from the date the employee became aware of the grievance [Source: Employment Relations Act 2000, s 115(3); s 134(1)].
  3. Investigative meeting: The ERA will conduct an investigative meeting, where it hears from the parties, reviews evidence, and asks questions. The Authority member actively manages the process, aiming for an informal and non-adversarial environment [Source: Employment Relations Act 2000, s 157(a)]. Parties can represent themselves or be represented by a lawyer, advocate, or other agent [Source: Employment Relations Act 2000, s 159(1)].
  4. Determination: After the investigation, the ERA issues a written determination, outlining its findings of fact, conclusions of law, and any orders it makes [Source: Employment Relations Act 2000, s 174]. These orders can include reinstatement, compensation for lost wages, compensation for humiliation, loss of dignity, and injury to feelings, or orders to comply with an employment agreement [Source: Employment Relations Act 2000, s 123; s 128]. The ERA can also impose penalties for certain breaches of the Act [Source: Employment Relations Act 2000, s 135].
  5. Appeals: A party dissatisfied with an ERA determination may appeal to the Employment Court on questions of fact or law [Source: Employment Relations Act 2000, s 186]. The Employment Court is a higher court specialising in employment law matters.

Powers of the ERA

The ERA has significant powers to conduct its investigations and make effective determinations, including:

  • Summoning witnesses and evidence: The ERA can summon people to attend hearings and give evidence under oath, and require the production of documents [Source: Employment Relations Act 2000, s 167; s 168].
  • Entry and inspection: An ERA member may enter premises for inspection purposes, subject to certain conditions [Source: Employment Relations Act 2000, s 171].
  • Interim orders: In certain urgent situations, the ERA can make interim orders before a final determination is reached [Source: Employment Relations Act 2000, s 175].

When to Seek Independent Legal Advice

Navigating employment relationship problems can be complex, and understanding specific rights and obligations under the Employment Relations Act 2000 requires careful consideration of individual circumstances. While the Employment Relations Authority provides an accessible pathway for dispute resolution, individuals or organisations involved in employment relationship problems may benefit from seeking independent legal advice to understand their position, prepare their case, or appeal a decision. Information and guidance can be sought from organisations such as Community Law Centres, citizens advice bureaus, or private legal practitioners. Community Law Centres provide free legal services to those who qualify.

Key Resources