Avoiding Common Employment Law Pitfalls: What NZ Employers Get Wrong (and What It Can Cost)
“At Rea Workshops, we’re all about making employment relations practical, not painful
But too often, we see businesses trip up over the same legal issues — not because they don’t care, but because they didn’t know what to look out for.
Here are a few of the most common employment law mistakes made by employers in Aotearoa — and why getting it wrong can cause stress, expense, and damage to trust.
1. Suspending Without Following Due Process
Suspension isn’t something you just “do on the spot.” It’s a serious action, and the process must be lawful. Too often, we hear of someone being stood down without:
Clearly outlining the allegations
Giving them a chance to respond
Considering alternatives
Providing written notice
❗The risk: An unjustified suspension can lead to a personal grievance and a hefty payout — even if the allegations turn out to be true.
2. Treating a 90-Day Trial Period Like a Free Pass
Many employers assume that a 90-day trial means they can end employment for any reason, no questions asked. But the rules are clear:
The trial clause must be written correctly and agreed before the employee starts
Only businesses with fewer than 20 employees can use it
You still need to act in good faith
❗The risk: If the trial period isn’t valid, the dismissal can be challenged like any other — meaning your business is open to a personal grievance claim.
3. Not Having Written Employment Agreements
In New Zealand, every employee must have a written employment agreement. It’s not optional. Yet many workplaces still rely on handshakes or verbal agreements — especially for casual or seasonal roles.
❗The risk: No agreement means no clarity — and if a dispute arises, the Employment Relations Authority won’t be on your side.
4. Assuming Poor Performance = Misconduct
They’re not the same. Poor performance is about not meeting expectations. Misconduct is about doing something wrong. If you treat one like the other — especially without support or warning — you could be acting unfairly.
❗The risk: Dismissing someone for “misconduct” when it’s actually performance-related can result in a successful grievance.
5. Skipping the ‘Why’ When Managing Change
Restructures, role changes, reduced hours — they all require clear and genuine consultation. A big mistake? Announcing changes before engaging your people.
❗The risk: Employees have the right to be heard before decisions are made. Failure to consult properly can invalidate the change and lead to claims of unfair treatment.
So, What Can You Do?
Getting it right doesn’t mean becoming a legal expert overnight. It means understanding your obligations, following fair process, and knowing when to pause and ask, “Have we done this properly?”
That’s where Rea Workshops come in. We take the guesswork out of employment relations. Our practical, scenario-based workshops give your people leaders the confidence to make good decisions, avoid costly mistakes, and build workplaces based on respect and clarity.
Let’s make employment law work for everyone — not just lawyers.
➡️ Check out our upcoming workshops or get in touch to talk about customised sessions for your team.