FAQ: How does my Conduct affect the Remedies Awarded in my Employment Dispute?
When addressing issues at work, you may find you have grounds for a personal grievance, even if you made a mistake. Perhaps your employer dismissed you without hearing your side, or gave you a warning without checking the facts. But proving that your employer acted unfairly does not always mean you will receive compensation or get your job back.
Your behaviour can affect what the Employment Relations Authority (ERA) or Employment Court orders as a remedy after finding that you have a personal grievance. Changes that took effect on 21 February 2026 made the consequences of contributing behaviour much stronger.
What does the law say?
The Employment Relations Act 2000 sets out remedies for personal grievances. Depending on the case, these can include lost wages, compensation for hurt and humiliation, reinstatement to your job, and recommendations to your employer.
For years, the Act allowed the ERA or Court to reduce a remedy if an employee’s behaviour contributed to the situation that led to their grievance. The Employment Relations Amendment Act 2026 changed those rules from 21 February 2026. New sections 123B and 123C limit which remedies can be awarded when an employee contributed. Section 124 deals with reducing remedies that remain available.
These rules apply when the ERA or Court decides a personal grievance. If you and your employer resolve the dispute yourselves or at mediation, you can agree on settlement terms.
What behaviour might be considered?
The question is whether your behaviour contributed to the situation that led to your personal grievance. Your employer saying you behaved badly is not enough on its own. The ERA or Court must look at what happened and how your actions relate to the dispute.
Depending on the facts, behaviour that might matter includes:
repeatedly ignoring reasonable instructions;
dishonesty during a workplace investigation;
bullying or harassing a colleague;
aggressive behaviour;
a serious safety breach; or
theft or fraud.
Employment New Zealand gives examples of misconduct and serious misconduct, but the circumstances of each case matter. What happened? Was an instruction reasonable? What did your employer know? Did your behaviour actually play a part in the decision you are challenging?
For example, if you swore at your manager and were then dismissed through an unfair process, your words may have contributed to the dismissal. If you were dismissed after raising a safety concern, an unrelated mistake from months earlier would not automatically count as contributing behaviour. The evidence and timing matter.
Raising a concern, asking for information, bringing a support person or making a personal grievance is not, by itself, misconduct. It is still wise to keep your messages accurate and respectful. Threats or abuse can create another workplace problem.
How could my behaviour affect the outcome?
The new rules have two main levels.
If your behaviour contributed, but was not serious misconduct, the ERA or Court cannot order your employer to reinstate you or pay compensation for hurt and humiliation or lost expected benefits. It can still award reimbursement for lost wages and make recommendations. It can also reduce a remedy that remains available to reflect your contribution.
If your contributing behaviour amounted to serious misconduct, the ERA or Court cannot award the personal grievance remedies that would otherwise be available. You might establish that your employer acted unjustifiably yet receive no remedy for that grievance. An accusation of serious misconduct does not decide the issue; it must be assessed on the facts.
For example, consider two employees dismissed after flawed investigations. One was repeatedly late after clear warnings. The other stole from the employer. If the ERA finds that each person’s behaviour contributed to their dismissal, the first may lose access to reinstatement and compensation and have lost-wages reimbursement reduced. If the second person’s conduct is found to be serious misconduct, no personal grievance remedy may be awarded. These are examples, not automatic results.
You can have grounds for a personal grievance even if your own behaviour is questioned. Since 21 February 2026, though, a finding that you contributed to the situation can remove reinstatement and compensation, reduce reimbursement for lost wages, or remove all personal grievance remedies if your conduct amounted to serious misconduct.
If you are facing an employment dispute, Mathews Walker’s employment advocates can help you understand the allegations, respond to your employer and assess your options. Contact Mathews Walker today for a free consultation. MathewsWalker.co.nz | Employment Problems Solved | 0800 612 355
Disclaimer: The information provided in this blog is for general informational purposes only and should not be considered legal advice. While we strive to keep the information accurate and up to date, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained on the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. For specific legal advice tailored to your situation, please contact a qualified legal professional.
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