Unregulated employment advocates are becoming a growing challenge for Canterbury businesses

Unregulated employment advocates are becoming a growing challenge for Canterbury businesses

Unregulated employment advocates are becoming a growing challenge for businesses across Canterbury and New Zealand. During our recent Employment Relations Forum with Chief Judge Christina Inglis, our members voiced strong concerns about the impact these advocates are having on workplace culture, productivity, and business confidence.

In response, we have formally written to the Minister for the New Zealand Workplace Relations and Safety, Hon. Brooke van Veldon, urging the Government to prioritise the introduction of a registration and regulatory framework for employment advocates.

• Download our open letter (PDF)

What Are Employment Advocates?

Employment advocates often operate in a role similar to lawyers by representing clients in Employment Relations Authority (ERA) or Court proceedings. However, unlike lawyers, employment advocates in New Zealand do not require a practising certificate, formal legal training or any specific qualifications. Crucially, there is no regulatory body overseeing their conduct or practice.

This means anyone can market themselves as an employment advocate, regardless of their legal knowledge or experience. There is no mandatory licensing system, code of conduct or formal accountability framework governing their work; this also means consumers have no professional body to which they can direct complaints.

How Did We Get Here?

The current landscape largely stems from changes introduced by the Employment Contract Act 1991:

• Before 1991, most employment advocates were connected to unions or employer associations, which provided a natural layer of oversight, accountability, and professional standards. These organisations ensured advocates adhered to ethical guidelines and offered a degree of protection both for employees and employers through structured representation and established processes.
• The Employment Contract Act 1991 fundamentally deregulated the employment advocacy sector, removing affiliation requirements and formal qualifications. This shift allowed independent individuals to operate as advocates without any mandatory training, licensing, or oversight. While this increased accessibility to advocacy services, it also opened the door for unregulated and sometimes rogue advocates to enter the market, often motivated by financial gain rather than professional standards.
• Today, it is estimated that there are around 300 employment advocates operating in New Zealand, though exact numbers are unclear. Many advocates choose to join the voluntary Employment Law Institute of New Zealand (ELINZ), which offers a code of conduct, but membership is optional and self-regulated. This means many advocates work entirely outside any professional association or oversight.
  
  

The Risks of Unregulated Advocacy

Employment advocates can play an important role in helping employees navigate workplace disputes. However, the rise of unregulated advocates, particularly those operating on no-win, no-fee contracts, has created significant challenges for employers and employees.

A "no win, no fee" agreement, also known as a conditional fee agreement, is a contract where an advocate is paid their fees only if the client wins their case. If the case is unsuccessful, the client owes the advocate nothing for their services. 

For Employers

Our members have reported situations where advocates are:

• Encouraging frivolous or opportunistic claims, leading to costly disputes.
• Using unsettling or aggressive tactics that create unnecessary stress and tension.
• Driving expensive settlements, even in cases that lack merit, due to the high cost of defending claims.

The result is mounting legal and financial pressure on businesses, leadership fatigue, and a reluctance to address performance issues, all of which undermine productivity and workplace culture.

These issues are not just anecdotal. For example, in Joyce v Ultimate Siteworks Ltd [2024] NZEmpC 204, Judge Holden criticised an advocate for unprofessional and abusive behaviour—including late-night calls, abusive emails, and negative online reviews—highlighting the absence of professional standards or a governing body to address such misconduct. Furthermore in,  H v RPW [2020] NZEmpC 141, Judge Perkins referred to an advocate’s intimidating and inflammatory behaviour and emphasised that advocates hold a privileged position before the Court under s 236 of the Act. The Judge suggested advocates should be held to the same behavioural standards as legal counsel.

For Employees

Unregulated advocates can leave employees vulnerable to poor outcomes. Without oversight or clear standards, some provide incomplete or misleading advice, charge excessive fees (with reports of up to 40% of settlements plus debt collection), or push claims that don’t serve the employee’s best interests. When cases are drawn out or mishandled, the result can be financial loss, reputational damage, and unnecessary emotional stress.

The cumulative effect of these issues is significant. Employers tell us they feel the system is increasingly unbalanced, with no accountability for advocates operating outside any formal regulation. This imbalance reduces hiring confidence, discourages proactive performance management, and erodes workplace trust. When both employers and employees lose confidence in the fairness of the system, the consequences ripple across the wider economy.

A Practical Guide to Working with Employment Advocates

Advice from our in-house HR/ER Consultant, Michael Prisk

As employers, we need to respect the right of employee to choose an employment advocate of their choice. While most employment advocates work towards achieving fair resolutions to employment situations, some employment advocates can be very intimidating, unprofessional, and overly aggressive.

If employment advocates prove difficult to deal with, here are some useful tips;

• Avoid reacting emotionally or engaging in heated exchanges. Instead, focus on the facts and seek common ground.
• Remind employment advocates of the requirement to act in Good Faith.
• Use respectful and solution-oriented communication. Acknowledge advocate’s concerns and express commitment to resolving the issue.
• Keep detailed records of interactions with the advocate. Note dates, times, and key points discussed.
• Move conversation online if communication in person or by phone becomes difficult.
• If communication stalls or no progress being made towards resolution, consider mediation.

If you’re facing challenges in this area, we recommend reaching out to Business Canterbury for support. Our HR/ER Consultant, Michael Prisk, has extensive experience working with employment advocates and can offer practical guidance tailored to your situation.

You can contact him at hradvice@cecc.org.nz or visit our HR Advice Membership page or HR Support page for assistance.

What We’re Asking For

In our letter to the Minister, we have called for the Government to:

• Introduce a registration system for employment advocates.
• Develop clear conduct guidelines to ensure fair and ethical advocacy.
• Establish a transparent complaints process to address poor behaviour or misconduct.

These measures would help protect both employers and employees, creating a fairer, more balanced employment relations system.

Our Commitment to Advocacy

Business Canterbury exists to champion the needs of our members and the wider business community. By raising these concerns directly with the Minister, we aim to spark constructive conversation and practical change.

We value the Minister’s ongoing engagement with our members and her openness to hearing these issues first-hand. We look forward to continuing this dialogue and working towards solutions that strengthen the employment system for everyone.