New Zealand's employment dispute resolution system is under review, and Grow HR has made a formal submission.
In July 2026, we submitted to the Ministry of Business, Innovation and Employment (MBIE) as part of the Government's review of the current system. Our submission drew on direct experience working with employers across the country, and it raised concerns we've watched build for some time.
What we told MBIE
The system is not working as well as it should for employers, particularly small and medium businesses.
The cost pressure starts well before a dispute reaches mediation. There's no meaningful early filtering of weak or speculative claims, which means employers spend money and management time on matters that should never have progressed. Mediation quality and settlement rates have declined. Once parties do reach agreement, certified Records of Settlement can sit waiting for weeks. And in some cases, representative conduct is escalating disputes rather than helping to resolve them.
These aren't edge cases. They're patterns.
What we recommended
Our submission put forward four practical changes:
- An early merits-screening step so that weak or speculative claims are filtered before significant costs are incurred.
- Licensing of employment advocates with an enforceable code of conduct.
- Faster access to in-person mediation.
- A target of under five working days to certify Records of Settlement once parties have already reached agreement on terms.
What happens next
The review is ongoing. Any legislative change will depend on the outcome of the general election in November 2026. Realistically, meaningful reform is at least a year away.
That is not a reason to stay quiet. The employer voice, especially from businesses without a dedicated HR function, needs to be part of this conversation while it is still being shaped.
We will update you as the review progresses.
In the meantime, if you are managing an employment matter under the current system and want to talk through your options, get in touch.