How To Write An Employee Grievance Letter In NZ Under Employment Law

Even in a well-run workplace, complaints happen. A staff member might feel they’ve been treated unfairly, left out of a process, or disciplined without enough support. Sometimes it’s a one-off misunderstanding. Other times, it’s a sign something more serious is going on.

When that concern becomes formal, you’ll often see it put in writing as a grievance letter from an employee. As a small business owner or manager, you don’t control what an employee writes - but you can control how your business asks for the complaint to be set out, what information you need, and how you document and respond in a way that’s fair, compliant, and practical.

This guide explains what an employee grievance letter usually includes, why it matters under NZ employment law, and how you can handle it properly (including a practical template you can adapt for your workplace).

What Is An Employee Grievance Letter (And Why Does It Matter)?

An employee grievance letter is a written statement from an employee that sets out a complaint about an employment-related issue. In NZ, this often connects to what the Employment Relations Act 2000 calls a personal grievance (for example, unjustified dismissal, unjustified disadvantage, discrimination, sexual harassment, or duress in relation to union membership).

From an employer perspective, a grievance letter matters because it usually signals one (or more) of the following:

• A legal risk issue - the employee may be positioning their complaint as a personal grievance.
• A process issue - the employee might be alleging you didn’t follow a fair process (for example, during performance management, restructuring, or disciplinary action).
• A relationship issue - even if it doesn’t become a formal claim, it can damage trust and create ongoing tension if it’s not handled well.
• A documentation trigger - it’s a clear point where you should tighten your record-keeping and communications.

In practice, many employees won’t use the “right” legal language. They may just say “I’m raising a complaint” or “I want to lodge a grievance.” That can still be enough to put you on notice that the matter is serious.

It’s also worth remembering your obligations to deal with employment matters in good faith. That means being communicative, responsive, and not misleading - even when a grievance feels unfair or frustrating.

Also keep an eye on timing. In many situations, a personal grievance must be raised within 90 days of the event (or when the employee became aware of it), although there are limited exceptions where an employee may be allowed to raise it late.

When Should You Ask For A Grievance To Be Put In Writing?

You generally don’t want to escalate minor day-to-day issues into something overly formal. But when a complaint is serious (or is becoming serious), requesting an employee grievance letter can help both sides by clarifying what the concern actually is.

In many workplaces, it’s appropriate to ask the employee to put their concerns in writing when:

• the employee is alleging bullying, harassment, discrimination, or serious misconduct by someone else
• the employee says they want to raise a “formal complaint” or “personal grievance”
• the employee is challenging a warning, a change to duties/hours, a pay issue, or a decision that affects their employment
• there’s a risk the details will be disputed later and you need an accurate record
• you need to investigate and want the allegations clearly defined

Tip: When you ask for a grievance in writing, keep your message neutral. You’re not accepting wrongdoing - you’re creating a clear channel for the employee to set out what they’re raising so you can respond properly.

This is also where having clear internal documents helps. A well-drafted Workplace Policy can set expectations about how complaints are made, who they go to, and what timeframes apply (without removing legal rights).

What Should An Employee Grievance Letter Include?

Employees write grievance letters in all sorts of styles - sometimes emotional, sometimes very detailed, sometimes only a few lines. From your side, you want to make sure the written grievance captures enough information for you to assess and investigate.

While you can’t “script” an employee’s complaint, you can request that they include certain details. A practical employee grievance letter will usually cover:

1. The Basics

• employee’s full name and role
• worksite/location (if relevant)
• date of the letter
• who the grievance is addressed to (e.g. manager, owner, HR contact)

2. The Issue They’re Raising

You want the employee to clearly state what they believe the problem is. For example:

• unfair disciplinary action
• pay or leave issues
• bullying or harassment
• unsafe work concerns
• discrimination
• a disagreement about a change to roster/hours or duties

Employment issues often overlap with contract terms. If a complaint turns on what the role is, hours of work, or disciplinary expectations, this is a good time to review the relevant Employment Contract to understand what was agreed.

3. Key Facts (Not Just Feelings)

A grievance letter is more useful when it sets out:

• what happened (events in order)
• dates and times (even approximate)
• who was involved
• who witnessed it (if anyone)
• what was said/done (specific examples)
• any relevant documents/messages (texts, emails, rosters)

As the employer, you should avoid pushing the employee into giving a “perfect” legal claim. But it’s completely reasonable to ask for enough detail to investigate properly and fairly.

4. The Impact

Employees will often explain how the situation has affected them (e.g. stress, reputational harm, inability to perform their role, lost income). This can be relevant to the resolution they’re seeking - and the seriousness of the allegation.

5. The Outcome They Want

A grievance letter should ideally say what the employee wants to happen next. Examples include:

• an apology
• withdrawal of a warning
• backpay or correction of leave/pay records
• mediation
• a change in reporting lines
• training, policy changes, or other preventative steps

Sometimes the “outcome” request will be unrealistic. That’s okay - the key is that it tells you what resolution the employee is aiming for.

A Practical Employee Grievance Letter Template (Employer-Friendly)

Below is a template you can provide to staff as a guide, or adapt into a workplace complaint form. The goal is to encourage clear information without sounding legalistic or intimidating.

Important: Don’t treat this as one-size-fits-all legal advice. For serious complaints (especially bullying, harassment, or allegations against managers), it’s worth getting tailored advice early.

Employee Grievance Letter Template

If you use this internally, it’s a good idea to pair it with a complaints pathway in your policies, including who to contact if the grievance is about the employee’s direct manager.

How Should You Respond When You Receive An Employee Grievance Letter?

How you respond can be just as important as the underlying facts. Even if you ultimately disagree with the grievance, a fair and timely process reduces risk and shows you acted reasonably.

Here’s a practical approach that works for many small businesses.

1. Acknowledge Receipt Quickly (In Writing)

You don’t need to respond to every allegation immediately, but you should confirm you’ve received the grievance and explain the next step.

• Thank the employee for raising it (neutral tone).
• Confirm you’ll review and investigate.
• Provide an expected timeframe, or say you’ll confirm timeframes shortly.
• Explain who will handle it (especially if independence is important).

2. Check Whether There Are Immediate Safety Or Wellbeing Risks

If the grievance involves bullying, harassment, or threats, you may need interim steps (for example, separating staff, changing reporting lines temporarily, or considering a suspension in rare cases).

If you’re considering suspending an employee (particularly on pay), get advice first. In NZ, suspensions need to be lawful and justified in the circumstances, and you generally need to consult with the employee before making that decision - mishandling this can itself create an “unjustified disadvantage” risk.

3. Investigate Fairly (And Don’t Pre-Judge)

Investigation doesn’t have to be a courtroom process, but it must be fair and genuine. That usually means:

• clarifying the allegations (what exactly is being claimed?)
• speaking with relevant people, including the employee raising the grievance
• giving the person accused a chance to respond
• reviewing documents (emails, rosters, performance notes)
• keeping detailed file notes

If the grievance arises out of performance management or discipline, it’s worth pressure-testing whether your process has been consistent and well-documented. This is a common area where employers get tripped up, even when they had a valid reason to act. If you need to tighten up your approach, a structured Performance Management Process can reduce ambiguity and help you stay consistent.

4. Be Careful With Privacy And Confidentiality

Grievances often involve sensitive personal information. Under the Privacy Act 2020, you should only collect, use, and share personal information where you have a lawful purpose and it’s necessary for dealing with the matter.

Practically, that means:

• limit information to “need to know” people
• store records securely
• avoid workplace gossip (and shut it down quickly if it starts)
• be clear with staff that confidentiality is expected

Many small businesses find it helpful to set expectations in an employee handbook or privacy-style documentation, such as an Employee Privacy Handbook, especially if you manage personal data across multiple systems.

5. Respond In Writing With Findings And Next Steps

Your outcome letter doesn’t need to be long, but it should be clear. Usually it should include:

• what you investigated
• the evidence you considered
• your findings (what you accept, what you don’t, and why)
• any actions you will take (training, policy updates, apology, correction of records, etc.)
• any actions you will not take (and reasons)
• a path forward (for example, mediation)

If the relationship is strained, mediation through MBIE can be a practical next step. A well-handled process often resolves matters before they escalate.

6. Watch The “Retaliation” Risk

A common mistake is treating the employee differently after they raise a grievance - even unintentionally. For example, cutting hours, excluding them from meetings, or suddenly changing duties without explanation can look like retaliation and may create fresh issues.

If you think operational changes are genuinely necessary, document the reasons and get advice to reduce risk.

Key Takeaways

• An employee grievance letter is a formal written complaint that can signal a personal grievance risk under NZ employment law, so it’s worth treating seriously from day one.
• You can’t control what an employee writes, but you can ask them to set out key facts (what happened, when, who was involved, witnesses, and what outcome they want) to help you investigate properly.
• Having a clear complaints pathway in your workplace documents makes it easier to handle grievances consistently and fairly, especially in a small team.
• When you receive a grievance, focus on a fair process: acknowledge it in writing, investigate without pre-judging, keep good records, and respond with clear findings and next steps.
• Be careful with privacy and confidentiality - grievances often involve sensitive personal information, and loose handling can create additional legal and cultural issues.
• If the grievance relates to performance or discipline, review whether your process matches your documentation and expectations - a structured approach can prevent disputes escalating.

If you’d like help responding to an employee grievance letter, setting up a clear workplace complaints process, or reviewing your employment documents, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.