Unjustified disadvantage is a Personal Grievance (PG) where an employer takes unjustifiable action that disadvantages an employee or worsens the employee's conditions. This page explains the basics, common examples, time limits, evidence, and practical next steps.
Unjustified disadvantage is one of the most common personal grievance types in New Zealand. It covers a wide range of employer actions that worsen an employee's conditions or otherwise disadvantage them.
Under section 103(1)(b) of the Employment Relations Act 2000, a personal grievance includes a claim that the employee's employment or conditions were affected to the employee's disadvantage by some unjustifiable action by the employer.
In plain terms: if your employer does something that harms you at work (pay, duties, hours, treatment, discipline, safety, opportunities) and they cannot justify it, you may have an unjustified disadvantage grievance.
Most unjustified disadvantage disputes are not about whether the employee was unhappy. They turn on whether the employer's action (and the process used) was fair and reasonable in the circumstances.
A practical warning: where the dispute is really about interpreting a clause in the employment agreement, it may be treated as an interpretation dispute rather than an unjustified disadvantage claim. The framing matters.
For most personal grievances, you generally must raise the grievance with the employer within 90 days of the action happening or coming to your notice (whichever is later). There are limited pathways for late grievances, but do not rely on them.
Subject: Personal grievance - unjustified disadvantage
I am raising a personal grievance (PG) for unjustified disadvantage. The disadvantage is: [briefly describe what happened]. The key dates are: [dates]. The outcome I want is: [what you are seeking]. Please confirm you have received this and advise the next steps.
Many unjustified disadvantage disputes resolve by agreement (often at MBIE mediation). Depending on the facts, outcomes can include changes to the employer record, compensation, and practical fixes.
Unjustified disadvantage claims are often a process audit. If you are responding as an employer, focus on the record and keep the process tight.
A detailed summary of [2026] NZERA 17. The Authority determined preliminary time limit issues for a COVID-19 vaccination dismissal case, holding the dismissal grievance was raised in time and proceedings were within 3 years, then directed the parties to mediation.
In Jingkai Wang v E|nvoco Ltd [2025] NZERA 845, the ERA found the employee was not dismissed and had resigned. A limited unjustified disadvantage was established due to the employer's failure to respond to concerns raised in the resignation email. The ERA awarded $1,500 compensation (after a 25% reduction for blameworthy conduct). Costs were reserved.
In Shubanghi Kaushal v Ambridge Rose Manor Limited [2025] NZERA 818, the ERA found the employee was unjustifiably dismissed and unjustifiably disadvantaged by the suspension process. The ERA ordered permanent reinstatement from 22 December 2025, $6,000 compensation (after a 20% contribution reduction), and payment of lost remuneration from 12 September 2025 to 22 December 2025 (amount to be fixed by agreement or referred back). Costs were reserved.
In Haochen Guo v Su's Investment Limited (trading as the Coffee Studio) [2025] NZERA 805, the ERA found unjustified disadvantage (abrupt suspension, bullying / unsafe environment, and failure to provide leave records) and unjustified dismissal where the employer purported to make the sole chef redundant without any consultation or information. The ERA ordered $25,000 compensation, $2,784 lost wages, $1,648 holiday pay, and a $500 penalty to the Crown, payable within 21 days. Costs were reserved.
In GXQ v NMK [2025] NZERA 772 (Auckland), the ERA found the applicant was unjustifiably constructively dismissed after the employer failed to maintain a safe workplace free from discrimination and psychological harm, including serious flaws in a workplace investigation and an unreasonable disciplinary approach. The ERA made a permanent non-publication order and awarded $25,274.31 special damages (legal fees), $80,903 gross reimbursement for lost wages, $55,618.47 gross for a short term incentive payment, and $40,000 gross compensation, payable within 21 days.
In Yusong Du v Sly House Limited [2025] NZERA 765, the ERA found the employee was unjustifiably dismissed after the employer ended employment by WeChat message without any disciplinary process or contractual notice. The ERA awarded lost wages of $14,435.40 and compensation of $10,000 but reduced remedies by 50 percent for contributory conduct (misleading about skills). The reduced remedy ordered was $12,217.70, plus costs of $4,500 and the filing fee of $71.55.
In Siddanth Prasad, Nishal Nikesh Lal, Amit Verma and Mukeshwar Prasad v Fiji Food Distributors NZ Limited [2025] NZERA 659 (Christchurch), the ERA found the employees worked excessive hours and were underpaid, leave and holiday entitlements were miscalculated, and the business sale in September 2021 occurred without adequate consultation (unjustified dismissal). The ERA ordered wage arrears totalling $456,364.35 across the four applicants, repayment of an $8,000 unlawful premium, and $32,000 compensation to each applicant. The Authority found the director Ameer Ali was a "person involved" in the employment standards breaches.
In Limei Wang v Serenity Float Clinic Limited [2025] NZERA 599 (Wellington), the ERA found Ms Wang was unjustifiably dismissed on redundancy grounds without the mandatory disclosure and consultation required by s 4(1A). The Authority ordered $2,035.50 unpaid wages, $4,714.67 unpaid holiday entitlements, $970.20 unpaid notice, and $15,000 compensation for humiliation, loss of dignity and injury to feelings. Because the company was insolvent, the ERA granted leave under s 142Y to recover wage and holiday pay arrears from the director Charl Eksteen as a "person involved" in the employment standards breaches. Penalties were declined and costs were reserved.
