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Process
Our process begins with a detailed case assessment to establish the procedural flaws and substantive unfairness that constitute bad faith. We gather all relevant evidence, including employment agreements, correspondence, and witness statements, to build a robust narrative for the Employment Relations Authority. A critical step is quantifying the non-economic loss, referencing precedents and the statutory cap, while also assessing any related claims for lost wages. We manage all aspects of the personal grievance procedure, from early mediation through to representation in authority hearings. For a deeper understanding of termination processes, we recommend reviewing our guide on what to do when you get fired.
At a Glance
| Parameter | Reference Value |
|---|---|
| Statutory Cap for Hurt & Humiliation | $20,000 NZD |
| Personal Grievance Filing Deadline | 90 days from dismissal |
| Typical Case Preparation Timeline | 3-6 weeks |
| Mediation Success Rate (Early Stage) | Approx. 70% |
Local Considerations — New Zealand
The application of bad faith principles is consistent nationally under the Employment Relations Act 2000, but local employment practices can influence case dynamics. In major commercial centres like Auckland, cases often involve complex corporate structures and executive-level dismissals. In contrast, matters in regions with significant primary industries or tourism may involve different patterns of workplace communication and procedure. Our national team is adept at navigating these regional nuances, ensuring our legal strategy is informed by the specific industrial and commercial context of your location, whether you are in Wellington, Christchurch, or elsewhere. For specific insights relevant to your area, learn more about employment law in New Zealand.
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Standards & Compliance
- Employment Relations Act 2000
- Good Faith obligations (s 4)
- Personal Grievance procedures (s 103)
- Remedies (s 123)
Frequently Asked Questions
What constitutes 'bad faith' in a dismissal?
Bad faith extends beyond an unfair reason for dismissal to include how the dismissal was carried out. This encompasses misleading an employee, lack of transparency, refusing reasonable requests for support, or acting in a deceptive or destructive manner during the termination process, as outlined in the duty of good faith under the Employment Relations Act.
How is compensation for bad faith dismissal calculated?
Compensation is for emotional harm—humiliation, loss of dignity, and injury to feelings. The amount is discretionary, based on evidence of impact, case precedents, and the conduct of the employer, but is subject to a statutory cap of $20,000. It is separate from any awards for lost wages or other remedies.
What is the time limit for filing a claim?
You have 90 days from the date your employment ended to raise a personal grievance for unjustified dismissal, which is the vehicle for a bad faith claim. This deadline is strict, and while the Authority can grant leave to file late, it is not guaranteed. Prompt legal advice is critical.
How much does a bad faith dismissal case cost in New Zealand?
Legal costs depend on case complexity, evidence volume, and whether mediation resolves the matter or a full Authority hearing is required. As a reference, preparation and representation for a straightforward case typically range from $4,000 to $10,000 + GST and disbursements. We provide a specific fee estimate following an initial case assessment.