We recently welcomed Chief Judge Christina Inglis of the Employment Court and AJ Lodge, Partner at Anderson Lloyd, for a candid conversation on the current state of employment relations in New Zealand. This exclusive session gave Canterbury businesses a rare opportunity to engage directly with one of the country’s most influential decision-makers on employment matters — covering everything from legal principles to practical pain points.
A central theme was the legal foundations of employment relationships in New Zealand. Chief Judge Christina Inglis highlighted two key principles: the duty of good faith (requiring constructive, open engagement) and the test of justification (requiring employers to act in a way a fair and reasonable employer would). She emphasised that employment relationships hold a special legal and social significance, and that while best practice is the goal, the law recognises that perfection isn't always achievable. A few common pitfalls were noted, like misusing redundancy to mask performance issues, overlooking the terms of employment agreements, or letting bias creep into disciplinary processes.
Common missteps include:
Misusing redundancy to avoid performance processes
Ignoring agreed employment terms
Allowing unconscious bias into disciplinary decisions
Another key theme was the growing cost and complexity of responding to employment disputes. With a 22% rise in claims to the Employment Relations Authority over the past two years, there’s mounting pressure on the system and those navigating it.
Chief Judge Inglis noted concerns about access to justice, particularly for small businesses and individuals facing the high cost of defending claims. In many cases, employers are opting to settle even weak claims simply to avoid the financial and emotional burden of drawn-out processes.
Small business owners shared that this fear of confrontation or cost often stops them from addressing underperformance early. The Chief Judge acknowledged these challenges, noting that the system still has a long way to go to better support healthy and fair employment relationships.
Remote and hybrid work models are surfacing new legal grey areas. Key concerns include:
Employer obligations for home health and safety
Monitoring and privacy issues
Challenges in requiring a return to office
Flexible work requests and the cost of supporting home setups were also raised. While employers can require a return to office, the message was clear: constructive, open dialogue is essential.
The line between employees and contractors is increasingly complex, especially with the rise of gig work and evolving employment models. This distinction matters because it determines access to key rights like minimum wage and holiday pay.
Chief Judge Inglis highlighted that employment status is based on the actual nature of the working relationship, not just the contract wording. Small business owners voiced confusion, particularly around contractors who earn more but might later claim employee status.
The upcoming Supreme Court decision on the Uber case was flagged as a potentially important clarifier for this issue.
Mediation was strongly encouraged — especially in-person, where possible.
Reinstatement remains the law’s primary remedy, but isn’t always the most practical one.
90-day trials and casual agreements continue to cause confusion; extra care is needed.
Concerns were raised about the quality of medical certificates, and the Chief Judge pointed to Medical Council guidelines.
The idea of standardised employment agreements, similar to commercial leases, was floated by participants.
Sessions like this don’t come along often — and they offer real value. It’s rare to hear directly from the Employment Court on current risks and evolving best practice, and rarer still to raise your hand and ask questions in person.
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