Unfair dismissal in New Zealand, the personal grievance process and the 90-day rules

Last updated 20 June 2026. This is general information, not legal advice.

Losing a job you did nothing to deserve is one of the most stressful things that can happen, and the law gives New Zealand employees real protection against it. But that protection is wrapped in two confusingly similar rules that both involve the number 90, and a tight deadline that catches people who wait too long. Get those straight and the path to challenging an unfair dismissal is clearer than it looks.

This guide explains the difference between the 90-day trial period and the 90-day deadline to raise a grievance, what makes a dismissal justified or not, how to raise a personal grievance and what it can win you. It is general information, not legal advice.

The two 90-day rules, untangled

When people say “the 90-day rule” they could mean one of two completely different things, and mixing them up causes real harm.

The first is the 90-day trial period, which applies only to new employees at the start of a job. If a valid trial period is in your employment agreement, the employer can dismiss you within the first 90 days and you generally cannot raise a personal grievance for unjustified dismissal.

The second is the 90-day deadline to raise a personal grievance, which applies to everyone. Whatever the problem, you have 90 days from when it happened, or from when you became aware of it, to raise a personal grievance with your employer. Miss that window and it becomes much harder to do anything.

So one 90 can take away your right to claim, and the other can run out your time to claim. They are not the same rule, and the rest of this guide deals with each in turn.

The 90-day trial period

Since 23 December 2023, any employer of any size can use a 90-day trial period, having previously been limited to businesses with fewer than 20 staff. A valid trial period lets an employer dismiss a new employee within the first 90 days without that employee being able to bring a personal grievance for unjustified dismissal.

The crucial word is valid, because the requirements are strict and a trial that gets them wrong does not protect the employer at all. To be valid, the trial period must be written into your employment agreement, the agreement must be signed before you start work, you must not have worked for that employer before, and you must have had a fair chance to seek advice on the agreement first. If you started work before signing, or you had worked there previously, the trial is very often invalid, and an invalid trial means you can challenge the dismissal like anyone else.

Even a valid trial period is narrower than employers sometimes think. It only removes the right to claim unjustified dismissal. It does not stop you raising a personal grievance for discrimination, harassment or other unlawful conduct, and it does not affect your right to be paid correctly, including your final pay and holiday pay. The employer also still has to act in good faith and give you the notice your agreement provides for. So being dismissed on a trial is not always the end of the road, and the first thing to check is whether the trial was actually valid. Our dedicated guide to 90-day trial periods goes through every validity condition, the notice rules, the February 2026 change and the cases.

If you earn over $200,000

A change that took effect on 21 February 2026 puts a ceiling on who can claim unjustified dismissal at all. If you earn $200,000 a year or more, you can no longer raise a personal grievance for unjustified dismissal, or for unjustified disadvantage that relates to a dismissal. The reasoning is that high earners are expected to negotiate their own protections into their contracts. Other grievances, such as discrimination, harassment and unpaid wages, are unaffected and remain open to everyone. Employees who were already earning above the threshold under an existing agreement have a 12-month transition before it applies to them.

Was the dismissal justified

If you are not on a valid trial period, your employer can only dismiss you if the dismissal is justified. The test, in section 103A of the Employment Relations Act 2000, is whether what the employer did, and how they did it, was what a fair and reasonable employer could have done in all the circumstances at the time. That test has two halves, and a dismissal has to pass both.

The reason has to be good enough. There has to be a genuine, sound reason, such as serious misconduct, persistent poor performance that has been addressed properly, or a genuine redundancy. A vague loss of confidence, a personality clash, or a reason invented after the fact does not cut it.

The process has to be fair. This is where most dismissals actually fall over. A fair process generally means the employer raises the concern with you clearly, gives you the information they are relying on, gives you a real chance to respond before any decision is made, lets you bring a support person, genuinely considers your explanation with an open mind, and, for performance or conduct issues, usually gives warnings and a chance to improve before dismissal. An employer who had a decent reason but ambushed you, denied you a chance to respond, or had already made up their mind has still dismissed you unjustifiably. One change from 21 February 2026 is worth knowing, that a minor procedural defect which did not actually result in you being treated unfairly will no longer, on its own, make a dismissal unjustified, and the Authority must also take into account where the employer was prevented from following a fair process by your own actions.

The short version is that a fair reason carried out genuinely unfairly is still an unjustified dismissal. Both the why and the how have to stack up, even if, since 2026, a trivial slip that changed nothing no longer counts against the employer on its own.

Constructive dismissal

You do not have to be formally sacked to have been dismissed in law. Constructive dismissal is where you resign, but only because your employer’s conduct left you no real choice. Being pressured to resign, being made an offer of resign-or-be-fired, or being subjected to treatment so unreasonable that staying was untenable can all amount to constructive dismissal, and it is treated as a dismissal you can raise a personal grievance over.

The bar is high, because you are arguing that resigning was effectively forced, so if you are being pushed towards quitting it is worth getting advice before you resign rather than after. Resigning in the heat of the moment can weaken a claim that the employer left you no choice.

Raising a personal grievance

A personal grievance is the formal way an employee challenges an unjustified dismissal or other unfair treatment under the Employment Relations Act. Here is how it works.

Raise it within 90 days. Under section 114, you must raise the grievance with your employer within 90 days of the dismissal or the action you are complaining about, or of when it came to your attention. Raising it simply means telling the employer, ideally in writing, that you have a personal grievance and what it is about. Do this even if you are still deciding what to do, because it preserves your position. The main exception is sexual harassment, where you have 12 months.

Try to resolve it directly, then use free mediation. Often the next step is a conversation or letter seeking to sort it out. If that does not work, the Ministry of Business, Innovation and Employment provides free mediation, which is informal, confidential and resolves a large share of employment problems without going any further. Any agreement reached there can be made binding.

Then the Employment Relations Authority. You can also apply to the Authority directly, though it will usually refer you to mediation first. If mediation does not settle it, the Employment Relations Authority, an investigative body, makes a binding determination. Beyond that sits the Employment Court. You can run a grievance yourself, and many people start without a lawyer, though for the Authority stage advice is often worth it. Free help is available from Community Law Centres and Citizens Advice Bureaux.

What you can get

If a personal grievance for unjustified dismissal succeeds, there are three main remedies under the Act.

• Lost wages. Reimbursement for the income you lost because of the dismissal, commonly up to three months’ wages, though the Authority or Court can award more.
• Compensation for hurt and humiliation. A payment for the way the dismissal affected you personally, such as humiliation, loss of dignity and injury to your feelings. Awards in this category have been rising.
• Reinstatement. Getting your job back, or an equivalent position. It is available where practicable and is the primary remedy in the Act, though in practice many people prefer compensation.

You may also be entitled to any wages, notice or holiday pay you were not properly paid, which is a separate question from the dismissal itself.

When your own conduct reduces it

The remedies are not automatic, and changes that took effect on 21 February 2026 made your own conduct count for far more than it used to. There are now three levels.

• If your conduct contributed to the situation but was not serious misconduct, you can no longer be reinstated or receive compensation for hurt and humiliation. You may still recover lost wages, but that can be reduced.
• If your conduct amounted to serious misconduct and contributed to the situation, no remedies of any kind can be awarded, not reinstatement, not lost wages, and not compensation.
• Where a reduction for contribution still applies to what remains, it can now be as much as 100 percent.

The effect is that a strong grievance is one where you behaved reasonably and the employer did not. If your own behaviour played a real part, even a procedurally unfair dismissal may now win you little or nothing, so be honest with yourself about your conduct before you start.

What to do now

1. Note the 90-day deadline immediately. Count 90 days from your dismissal and treat that as a hard line to raise your grievance by.
2. Gather your documents. Your employment agreement, any warnings, the dismissal letter, emails, and notes of meetings. Check whether any trial period was valid.
3. Raise the grievance in writing. Tell your employer you are raising a personal grievance and briefly why. It does not have to be a polished legal document.
4. Get free advice early. A Community Law Centre, Citizens Advice Bureau, or your union if you have one, can help you assess the claim before you commit to anything.
5. Use free mediation. Ask for MBIE mediation. It is the fastest and cheapest way most grievances are resolved.

The takeaway

An unfair dismissal in New Zealand is not something you have to simply accept. Unless you were validly on a 90-day trial, your employer had to have a sound reason and follow a fair process, and most dismissals that go wrong go wrong on the process. The single most important thing is the clock. You have 90 days to raise a personal grievance, so raise it early, in writing, then use free mediation before anything more formal. Behave reasonably, keep your records, and the system gives an unfairly dismissed worker a genuine remedy.

Related guides

• 90-day trial periods in New Zealand, the rules, your rights and when a trial is invalid
• Can my employer make me redundant in New Zealand

Frequently asked questions

How long do I have to challenge an unfair dismissal in New Zealand

You have 90 days from the dismissal, or from when you became aware of it, to raise a personal grievance with your employer. Sexual harassment grievances have 12 months. Miss the 90 days and you generally need the employer’s consent or leave of the Authority to proceed, so act quickly.

Can I be dismissed during a 90-day trial period

If the trial period is valid, yes, and you generally cannot raise an unjustified dismissal grievance. But the trial is only valid if it was in your written agreement, signed before you started, you had not worked there before, and you had a chance to get advice. If any of that is missing the trial may be invalid, and you can still raise discrimination, harassment or unpaid wages claims regardless.

What makes a dismissal unjustified

A dismissal is unjustified if the employer did not have a genuine sound reason, or did not follow a fair process, judged by what a fair and reasonable employer could have done in the circumstances. A fair process usually means raising the concern, giving you the information and a real chance to respond, allowing a support person, and considering your explanation before deciding. A good reason handled unfairly is still unjustified.

What is constructive dismissal

It is where you resign but only because your employer’s conduct left you no real choice, such as being pressured to quit, given a resign-or-be-fired ultimatum, or treated so unreasonably that staying was untenable. It is treated as a dismissal you can raise a personal grievance over. Get advice before resigning, because how and why you resign affects the claim.

What can I get if my personal grievance succeeds

The main remedies are reimbursement of lost wages, commonly up to three months but sometimes more, compensation for hurt and humiliation, and in some cases reinstatement to your job. You may also recover any wages, notice or holiday pay you were underpaid. Since 21 February 2026, if your own conduct contributed you can lose reinstatement and hurt and humiliation compensation entirely, and serious misconduct that contributed can mean no remedies at all.

Does it cost money to raise a personal grievance

Raising the grievance with your employer and using MBIE mediation are free, and many people resolve their problem at those stages without paying anyone. If it goes to the Employment Relations Authority there are some costs and legal advice is often worth it, but you do not need a lawyer to start, and free help is available from Community Law and Citizens Advice.

Can high earners claim unfair dismissal

From 21 February 2026, employees earning $200,000 a year or more can no longer raise a personal grievance for unjustified dismissal, or for unjustified disadvantage relating to a dismissal. Other grievances such as discrimination and harassment remain available to everyone. Employees already over the threshold under an existing agreement have a 12-month transition before the rule applies.

I was made redundant, can I raise a grievance

A genuine redundancy is a lawful reason to end a job, but it still has to be genuine and carried out through a fair process, including real consultation. A redundancy used as a cover to remove someone, or run without proper process, can be challenged as an unjustified dismissal. See our guide on redundancy rights in New Zealand.

Have you raised a personal grievance in New Zealand, or had an unfair dismissal put right at mediation? Tell us how it went in the comments below.