What Does A Partially Upheld Personal Grievance Mean In NZ?

If you employ staff in New Zealand, there’s a good chance you’ll come across the term personal grievance at some point - whether it’s as part of a workplace conversation, a letter from an employee (or their representative), or a formal process through MBIE mediation or the Employment Relations Authority (ERA).

One outcome that often surprises small business owners is when a personal grievance is partially upheld. It can feel confusing: if you “won” some parts, why are you still facing remedies, compensation, or criticism about how you handled the process?

Don’t stress - a partially upheld personal grievance is common, and it doesn’t automatically mean you’re a “bad employer” or that you’re destined for a worst-case outcome. But it does mean the decision-maker found something unlawful or unreasonable in part of what happened, and that can still carry real consequences (and lessons) for how you manage your team going forward.

Below, we break down what a partially upheld personal grievance means in practice, what outcomes you might be facing, and what you can do to protect your business from day one - and especially once a grievance lands in your inbox.

What Is A Personal Grievance (And When Can It Be Raised)?

A personal grievance is a formal complaint an employee can raise if they believe an employer has treated them unlawfully or unfairly in certain ways. In New Zealand, the personal grievance framework sits mainly under the Employment Relations Act 2000.

In most cases, an employee must raise a personal grievance within 90 days of the action complained about (for example, the dismissal or disadvantage). There are limited exceptions where an employee may be allowed to raise it late (for example, where the employer agrees or where the Authority grants leave), but you shouldn’t assume a late grievance is automatically invalid.

Personal grievances are most commonly raised for:

• Unjustified dismissal (including constructive dismissal, where an employee says they were forced to resign)
• Unjustified disadvantage (where the employee says your actions harmed them in their employment, even if they weren’t dismissed)
• Discrimination or sexual harassment
• Duress over membership (or non-membership) of a union

From a small business perspective, the most common triggers we see are:

• A termination process that moved too quickly (or didn’t give a real chance to respond)
• A performance issue handled informally for too long, then escalated suddenly
• A restructure where consultation wasn’t done properly
• Workplace conflict that wasn’t documented or addressed early

One of the best “prevention tools” is getting the basics right early: a clear Employment Contract, consistent documentation, and a practical Workplace Policy that fits how your business actually operates.

What Does “Partially Upheld” Mean In A Personal Grievance Outcome?

When a decision-maker (often the ERA, and sometimes the Employment Court on challenge) says a personal grievance is partially upheld, it generally means:

• Some parts of the employee’s grievance were successful (the Authority agreed with them on certain issues), and
• Other parts were not successful (the Authority did not accept all allegations or all legal grounds).

This can happen in a few different ways.

1) One Cause Of Action Succeeds, Another Fails

An employee might raise multiple personal grievance grounds at the same time. For example:

• Unjustified dismissal, and
• Unjustified disadvantage (about the steps taken before dismissal), and
• Discrimination (about how they were treated compared to others)

A “partially upheld” outcome could mean the ERA finds the dismissal was justified on substance, but there was still an unjustified disadvantage earlier in the process - or vice versa.

2) The Employer Was “Right”, But The Process Was “Wrong”

This is one of the most common partially upheld scenarios.

You might have had a genuine reason to dismiss (for example, repeated performance issues or serious misconduct), but the way you handled the process didn’t meet the legal standards of fairness - such as not giving adequate notice of a meeting, not providing key information, not allowing a support person, or making the outcome feel predetermined.

In New Zealand employment law, process matters. Even where your concerns are valid, the question often becomes: did you act as a fair and reasonable employer would have in all the circumstances?

This is exactly why it’s worth having a structured performance and termination process in place, rather than “winging it” under pressure. Where performance is involved, a documented pathway like a Performance Management Process can make a big difference.

3) The Employee Proves Some Allegations, But Not All Facts

Sometimes, an employee’s story includes multiple alleged events (for example, bullying claims, workload issues, and a later dismissal). The decision-maker may accept some events occurred (or that your response was inadequate), while rejecting others.

That can still be a partial “win” for the employee - and a risk for you - because a single upheld element may justify remedies.

Why A Personal Grievance Might Be Partially Upheld (Common Employer Traps)

Small businesses are often doing their best with limited time, limited HR support, and a lot of competing priorities. The problem is that employment law still expects you to meet certain standards - and those standards don’t disappear just because you’re busy.

Here are common reasons the ERA might partially uphold a personal grievance.

Missing Or Incomplete Process Steps

Even if you had a genuine concern, issues can arise if you didn’t:

• clearly explain the concerns to the employee (in writing is best)
• provide reasonable time for them to respond
• give them the key information you relied on
• genuinely consider their response before deciding
• follow your own internal policies and employment agreement terms

Poor Documentation (Or No Documentation)

If it isn’t written down, it’s much harder to prove later. In a personal grievance, the details matter - dates, what was said, what options were offered, and whether you followed through.

This doesn’t mean you need to create a mountain of paperwork. It just means you need a consistent system for:

• confirming key conversations by email
• keeping meeting notes
• using written warnings appropriately
• recording investigations and outcomes

Confusing “Performance” With “Misconduct”

Performance issues usually require support, feedback, time to improve, and clear expectations. Misconduct (depending on severity) may justify a more immediate disciplinary approach.

Where employers mix these up, the process often becomes legally shaky - leading to partially upheld outcomes.

Restructures And Redundancies Without Proper Consultation

If the issue involves reducing roles or hours, a common pitfall is making changes too quickly without proper consultation or without exploring alternatives. Even if you genuinely need to restructure, you still need a fair process.

If redundancy is on the table, tailored advice early can help avoid a grievance later - this is a situation where speaking with a lawyer (or using a service like Redundancy Advice) can be a smart move.

What Happens If A Personal Grievance Is Partially Upheld? (Remedies, Risks, And Costs)

When a personal grievance is upheld (even partially), the ERA can order remedies. The outcome depends on what was upheld, how serious it was, and how the events affected the employee.

It’s also worth knowing that, in New Zealand, reinstatement is treated as the primary remedy for unjustified dismissal (even though it isn’t ordered in every case). That means the ERA must consider reinstatement where it’s sought, before moving to other remedies such as compensation.

Common remedies include:

1) Reimbursement Of Lost Wages

If the employee lost income because of what happened (usually a dismissal), the ERA can order lost wages reimbursement.

Even in partially upheld cases, this can still apply - for example, if the employer had valid concerns but the dismissal was still found to be unjustified overall (including because of procedural unfairness).

2) Compensation For Humiliation, Loss Of Dignity, And Injury To Feelings

This is one of the most well-known remedies in a personal grievance. It’s not about punishing the employer - it’s about compensating the employee for the emotional impact of what occurred.

A key point for employers: even if the employee “overreached” and only proves one part of their claim, compensation can still be awarded if that part is serious enough.

3) Reinstatement (Sometimes)

Reinstatement (the employee getting their job back) is possible, but it isn’t always practical - especially in small businesses where relationships have broken down.

Still, it’s something to be aware of, and you should treat it seriously if raised in negotiations or proceedings.

4) Contribution / Reduction In Remedies

In some cases, the ERA may find the employee contributed to the situation (for example, through misconduct or unreasonable behaviour). Where that happens, remedies can be reduced.

This is another common reason an outcome is “partial”: the employer did something wrong, but the employee also played a role.

5) Costs

Costs can be complicated. The ERA has discretion to award costs, and parties sometimes agree to costs as part of settlement. A partially upheld finding can affect costs in different ways, depending on:

• how the parties behaved during the process
• the reasonableness of any settlement offers
• the extent to which each party succeeded

Because the costs risk can be significant, it’s usually worth getting advice early once a personal grievance is raised, so you can take a strategic approach from the start (and avoid making admissions or missteps that escalate the dispute).

How Should Employers Respond To A Personal Grievance (Especially If You Think It Might Be “Partial”)?

When a personal grievance letter arrives, it’s normal to feel defensive - especially if you believe you’ve acted reasonably or you’re dealing with a difficult employee situation.

But your first steps matter a lot, and they can shape whether the dispute escalates or resolves quickly.

1) Don’t Ignore It (And Don’t Fire Off A Reactive Reply)

Ignoring a personal grievance can make things worse, and a rushed response can accidentally admit facts or take positions that later undermine you.

A better approach is to:

• acknowledge receipt
• ask for time to review
• gather documents and create a timeline
• get legal advice before you respond substantively

2) Get Your Evidence In Order

Pull together the key records early, such as:

• employment agreement and any variations
• performance reviews, warnings, and meeting notes
• investigation materials (if misconduct was involved)
• rosters and payroll records (if wages/hours are disputed)
• emails and written communications

If you don’t have an up-to-date written agreement in place, that can add risk and uncertainty. This is why having a properly drafted Employment Contract (that matches the actual work arrangement) is so important.

3) Consider Early Resolution Through Mediation

Most personal grievance disputes can be resolved without a full hearing, often through MBIE mediation. Early resolution can save time, money, and stress - and it also helps you control risk.

If a settlement is reached, it’s usually documented in a full and final settlement. In many situations, a tailored Deed of Settlement can help make sure the matter is properly closed off (and that confidentiality, non-disparagement, and payment terms are clear).

4) If Termination Is Involved, Double-Check You Followed A Fair Process

Partially upheld grievances often come down to procedural issues. Ask yourself:

• Did we give the employee a real opportunity to respond?
• Did we provide the information we relied on?
• Did we keep an open mind before making a decision?
• Did we allow a support person?
• Did we consider alternatives to dismissal (where appropriate)?

If the answer is “not really” to any of those questions, it’s a sign the grievance might be partially upheld - and you may want to focus your strategy on practical resolution and future risk reduction.

5) Plan For The Business Impact

Even where you believe you acted appropriately, a personal grievance can take up management time and impact morale. It can also create uncertainty for other staff members.

It’s worth thinking about:

• how you’ll communicate internally (without breaching privacy)
• who will manage the process (so it’s consistent and calm)
• how to reduce the chance of similar disputes in future

If you need help with strategy, documents, or an end-to-end response, speaking with an Employment Lawyer early is often far cheaper than trying to fix things after the dispute escalates.

Key Takeaways

• A personal grievance can be partially upheld when the decision-maker agrees with the employee on some issues, but not others (for example, the process was unfair even if the underlying concern was valid).
• Partially upheld outcomes are common in NZ employment disputes, especially where employers had a genuine reason to act but didn’t follow a fair and reasonable process.
• Even a partially upheld personal grievance can lead to remedies such as lost wages, compensation for hurt and humiliation, and potentially costs, depending on what was upheld.
• Strong foundations (clear employment agreements, consistent documentation, and practical workplace policies) reduce the risk of grievances and improve your position if a dispute arises.
• Early, calm, and strategic responses - including mediation where appropriate - can help resolve personal grievances faster and with less disruption to your business.

If you’d like help responding to a personal grievance, improving your employment processes, or putting the right documents in place, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.