Lawful And Reasonable Directions In The Workplace In New Zealand

As a small business employer, you probably give directions all day long. Some are simple (“please stock the shelves before opening”), and others can be more sensitive (“we need you to stop doing X and start doing Y”).

Most of the time, this is straightforward. But when a direction is challenged, ignored, or becomes part of a performance issue, the legal question quickly becomes: was it a lawful and reasonable direction?

Understanding the rules around giving lawful and reasonable directions in the workplace is one of the most practical ways to reduce employment disputes, protect your business, and manage your team confidently.

Below, we break down what “lawful and reasonable” actually means in New Zealand, what kinds of directions are (and aren’t) likely to be enforceable, and how to handle things if an employee refuses.

What Are “Lawful And Reasonable Directions” (And Why Do They Matter)?

In plain terms, a lawful and reasonable direction is an instruction you give an employee that:

• Is lawful (it doesn’t require the employee to break the law, breach their rights, or act outside what’s legally allowed); and
• Is reasonable (it’s fair, proportionate, and sensible in the circumstances, taking into account the employee’s role, your business needs, and the context).

These directions matter because they sit at the heart of the employment relationship. In New Zealand, employment relationships are governed by the Employment Relations Act 2000, which includes an obligation of good faith. That good faith obligation generally means you should communicate openly and honestly, and employees should engage constructively too.

In most workplaces, there is also an implied expectation that employees will follow lawful and reasonable directions as part of doing their job. If your direction meets that test and an employee refuses without a proper reason, it can become a legitimate performance or misconduct issue (but how you manage that next step matters a lot).

For many small businesses, the biggest risk isn’t “giving a direction” - it’s giving one without the right groundwork (like clear job descriptions, training, policies, and documentation), which makes it harder to show your direction was reasonable if it’s later challenged.

What Makes A Direction “Lawful” In NZ?

“Lawful” is the easier half of the test, but it’s still where many employers accidentally stumble. A direction is generally lawful if it:

• doesn’t require an employee to break the law;
• doesn’t conflict with the employee’s employment agreement;
• doesn’t breach minimum employment standards (like rest breaks, leave entitlements, minimum wage);
• doesn’t breach anti-discrimination rules (Human Rights Act 1993) or amount to bullying/harassment;
• respects privacy requirements where relevant (Privacy Act 2020); and
• aligns with your health and safety duties (Health and Safety at Work Act 2015).

Check The Employment Agreement First

A common issue in disputes about directions is that the instruction doesn’t match what the employee actually agreed to do.

This doesn’t mean you can never ask someone to do something outside a narrow list of tasks. Many employment agreements have flexibility built in (for example, “other duties within the employee’s skill and experience”). But if your instruction is a major change to the role, pay, hours, or location, it may be outside the scope of a direction and instead become a variation to the agreement, which generally requires consultation and agreement.

Having a well-drafted Employment Contract helps here, because it sets expectations about duties, reporting lines, flexibility, and workplace rules from day one.

Make Sure You’re Not Directing Someone To Do Something Unsafe

Under the Health and Safety at Work Act 2015, you have a primary duty to ensure, so far as is reasonably practicable, the health and safety of your workers. That has a practical impact on directions you give.

For example, it’s unlikely to be “lawful” to direct an employee to:

• operate machinery they haven’t been trained on;
• lift heavy items without appropriate assistance/equipment;
• work in an area with a known hazard that hasn’t been controlled; or
• ignore safety procedures to “save time”.

A direction can feel commercially urgent, but if it cuts across health and safety obligations, it’s a problem.

Be Careful With Privacy-Related Instructions

Some directions involve collecting, using, or disclosing personal information - for example, telling a manager to share an employee’s medical information with colleagues, or asking staff to access customer data in a new way.

Because the Privacy Act 2020 regulates how personal information is handled, privacy-related directions should be considered carefully and supported by clear internal rules. If your business collects personal information (from customers or staff), having a fit-for-purpose Privacy Policy and internal guidance reduces the risk of accidental breaches.

What Makes A Direction “Reasonable” (The Part That Gets Tricky)?

“Reasonable” is where most disputes happen, because it depends on the situation. A direction that’s reasonable in one workplace (or at one time) might be unreasonable somewhere else.

When deciding if a direction is reasonable, you should think about factors like:

• Role fit: Is the direction connected to the employee’s role and responsibilities?
• Business need: Is there a genuine operational reason for the instruction?
• Capability and training: Does the employee have the skills, tools, and training to comply?
• Impact on the employee: Does it unreasonably affect pay, hours, workload, health, or family responsibilities?
• Consistency and fairness: Are you applying the same standards to others in similar roles?
• Timing and notice: Was the request made with reasonable notice (where possible)?
• Proportionality: Is the direction the least intrusive way to achieve the business goal?

Reasonable Directions Usually Look Like This

Here are examples that are often considered reasonable (depending on the exact circumstances):

• directing an employee to follow a safety procedure or wear PPE;
• directing an employee to follow standard operating procedures;
• changing task priorities during a busy period (within their role);
• asking an employee to attend a performance meeting or investigation meeting;
• directing an employee not to contact a customer while a complaint investigation is underway; or
• directing an employee to comply with a workplace policy (where it’s lawful and properly communicated).

This is why having a clear Workplace Policy framework matters. Policies help you show that your instruction wasn’t random or personal - it was based on established business rules.

Directions That Can Become Unreasonable

Some directions are more likely to be challenged because they start to blur into “changing the deal” or placing unfair demands on a worker.

Examples that may be unreasonable (or at least risky) include directing an employee to:

• accept a significant reduction in hours or pay without a proper process;
• work excessive hours without proper breaks or compensation;
• perform duties requiring a different qualification/licence they don’t hold;
• attend work while unwell (especially if it risks health and safety);
• disclose private information about themselves (unless there’s a lawful basis and it’s proportionate); or
• agree to new restraints or obligations “on the spot” (for example, a new non-compete restriction) without advice and agreement.

If you want enforceable restraints, it’s much safer to document them properly (and make sure they’re tailored). Depending on your needs, this could involve a Non-Compete Agreement or a broader restraint of trade arrangement, rather than trying to impose it as a workplace “direction”.

Common “Lawful And Reasonable Directions Workplace” Scenarios For Small Businesses

To make this practical, here are some common scenarios where small business owners often ask “can I direct an employee to do this?”

1) Directing Employees To Follow Policies (Uniforms, Phones, Conduct)

Generally, you can direct employees to comply with reasonable workplace rules like:

• wearing a uniform or meeting presentation standards (particularly customer-facing roles);
• not using phones on the shop floor (except during breaks or emergencies);
• following cash handling processes;
• treating customers and coworkers respectfully; and
• not posting confidential business information online.

The key is to make sure the policy is:

• clearly written;
• communicated to staff;
• consistently enforced; and
• not discriminatory or overly intrusive.

2) Directing Employees To Work Different Duties Or Shifts

This is where the distinction between a “direction” and a “contract change” becomes important.

If the duties are within the employee’s skill set and broadly aligned with their role, and the employment agreement allows some flexibility, it may be a lawful and reasonable direction. But if you’re changing core parts of the job (for example, moving a weekday admin employee onto weekend retail shifts permanently), you may need consultation and a written variation.

Tip: if you regularly need flexibility, build it into your employment documentation and rostering practices from the start. It’s much harder to retrofit this later when tensions are high.

3) Directing Employees During A Conflict Of Interest Situation

Small businesses can be especially vulnerable to conflicts of interest (because teams are small and staff often wear multiple hats). You might need to direct an employee to:

• disclose outside work that overlaps with your business;
• step back from dealing with a particular supplier/customer; or
• stop using business systems or customer lists for non-work purposes.

These directions are more defensible when you’ve already set expectations through a Conflict Of Interest Policy.

4) Directing Employees To Attend Meetings (Performance Or Investigation)

If there’s a performance concern or alleged misconduct, you can usually direct an employee to attend a meeting to discuss it (with reasonable notice). As part of a fair process, it’s often appropriate to let them bring a support person (and in some cases this may be expected), depending on what’s being discussed and your workplace practices.

Where employers get caught out is not the direction itself, but the process around it - for example, pre-judging outcomes, not giving adequate information, or not genuinely considering the employee’s explanation.

If you’re heading toward disciplinary action or termination, getting the paperwork and steps right becomes critical. Many employers choose to use a structured set of documents to reduce risk, such as an Employee Termination Documents Suite, tailored to the situation.

What If An Employee Refuses A Direction?

An employee refusing a direction doesn’t automatically mean “instant dismissal” (and moving too fast is where employers often create legal risk).

Instead, treat it as a structured decision-making process.

Step 1: Pause And Clarify The Direction

Before escalating, check whether the refusal is based on a misunderstanding.

• Was the instruction clear and specific?
• Did the employee understand what was required and by when?
• Did they raise a concern (for example, safety, training, workload, family responsibilities)?

Sometimes a quick clarification resolves the issue without it becoming a formal dispute.

Step 2: Consider Whether The Direction Was Lawful And Reasonable

This is the core test in action. Ask yourself:

• Is the direction within the scope of their role and employment agreement?
• Is there a legitimate business reason?
• Is there a safety or legal risk in requiring compliance?
• Have we provided the training, tools, and time needed?
• Would an objective outsider view it as fair?

If you’re not confident, it can be worth getting advice early. A short legal check now can save you from a much bigger problem later.

Step 3: Document What Happened

Even if the issue resolves quickly, keep a written record of:

• the direction given (what, when, and by whom);
• the employee’s response and reasons;
• any follow-up discussions; and
• the outcome agreed (if any).

Documentation is often what makes the difference between a manageable issue and an “it’s your word against theirs” dispute.

Step 4: Decide Whether This Is Performance Or Misconduct

Repeated failure to follow instructions may be a performance issue (especially if the employee is struggling with capability, training, or expectations). A deliberate refusal may be misconduct.

Either way, be careful to follow a fair process. Under New Zealand employment law, employers are expected to act as a “fair and reasonable employer” would in the circumstances (which includes proper process).

Step 5: Escalate Only If Needed (And Follow A Fair Process)

If you do need to move toward formal action, this typically involves:

• raising the issue formally (often in writing);
• setting out the concerns and giving the employee a chance to respond;
• considering their response genuinely;
• deciding on an outcome that’s proportionate; and
• clearly recording the decision and next steps.

This is one of those areas where templates can be risky, because the “right” process depends on what happened, your existing documents, and the employment agreement. If you’re unsure, it’s worth getting tailored advice before taking action.

How To Protect Your Business From Day One (So Directions Don’t Turn Into Disputes)

Most conflict around directions isn’t because an employer is trying to be unreasonable. It’s because expectations weren’t clear early on, or the business grew faster than its systems.

Here are practical ways to reduce risk.

Put The Right Foundations In Place

• Clear employment agreements: Include duties, flexibility (where appropriate), work hours, and policies that form part of employment.
• Up-to-date policies: Cover conduct, health and safety, bullying/harassment, privacy/confidentiality, social media, and conflicts of interest.
• Training and onboarding: If you want to direct staff to follow a process, you need to show they were trained on it.
• Consistent management habits: Apply rules consistently, keep records, and address issues early (before they become “normal”).

Use Written Directions When It Matters

Not every instruction needs to be in writing. But when the direction is likely to be disputed later (or relates to safety, misconduct, or performance), it’s smart to document it.

A written direction should be:

• specific (what you need them to do);
• reasoned (briefly explain why it’s required);
• time-bound (by when); and
• supportive (invite the employee to raise concerns or barriers).

This approach shows good faith, and it helps demonstrate that your instruction was measured and reasonable.

Remember: Directions Aren’t A Shortcut For Contract Changes

As your business evolves, you might need to change roles, restructure hours, or update how work is done. Some changes can be done via directions (where the contract already allows it), but others need consultation and agreement.

If you’re not sure which bucket a change falls into, it’s better to check before implementing it. Trying to force a major change as a “direction” is a common trigger for personal grievances.

Key Takeaways

• A lawful and reasonable direction is one that is both legally permitted and fair in the circumstances, considering the employee’s role and your business needs.
• “Lawful” directions must not require unlawful conduct, breach minimum standards, or conflict with key obligations under Acts like the Employment Relations Act 2000, Health and Safety at Work Act 2015, Human Rights Act 1993, and Privacy Act 2020.
• “Reasonable” directions depend on context, including role fit, training, timing, operational need, and proportionality.
• Many workplace disputes about directions can be prevented by having clear employment agreements, well-communicated policies, and consistent management practices from day one.
• If an employee refuses a direction, slow down and assess: clarify expectations, consider whether the direction is lawful and reasonable, document what happened, and follow a fair process before escalating.
• When directions overlap with bigger employment decisions (like major duty changes, restraints, or termination), getting tailored legal advice early can significantly reduce risk.

If you’d like help putting the right employment foundations in place - or you’re dealing with a situation where an employee is refusing directions - you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.