When Hiring Goes Wrong -- What NZ Employers Need to Do

Bad hires happen to every business. In New Zealand's employment environment, how you respond matters enormously. The Employment Relations Act 2000 is strongly employee-focused, and employers who cut corners when managing a poor performer or misconduct situation risk costly personal grievance claims. Find A Professional NZ (FPNZ) lists employment lawyers and HR consultants who help NZ employers navigate these situations correctly at www.findaprofessional.co.nz.

Recognising a Bad Hire vs a Support Problem

•       Were expectations clearly communicated in writing from day one?

•       Did the employee receive adequate induction, training, and support?

•       Has constructive feedback been given and documented?

•       Is the issue performance, attitude, or cultural fit -- and has it been addressed directly?

•       Only after these steps have been taken should formal performance management begin

The Performance Improvement Plan (PIP) Process

•       Identify specific areas of concern with clear examples

•       Set measurable targets for improvement with a reasonable timeframe (typically 4 to 12 weeks)

•       Provide support and resources to help the employee succeed

•       Hold regular check-in meetings and document progress

•       A PIP creates both an opportunity for the employee to improve and a paper trail for the employer

The Disciplinary Process for Misconduct

•       Investigate: gather facts, interview witnesses, and review evidence

•       Notify the employee in writing of the allegation and invite them to a meeting

•       Hold a disciplinary meeting: allow a support person, listen to their response

•       Genuinely consider their explanation before making a decision

•       Communicate the outcome in writing, including any right of appeal

•       Serious misconduct may justify summary dismissal but the process steps still apply

What Employment Dispute Costs in NZ

Frequently Asked Questions

How long does an employee have to raise a personal grievance in NZ?

An employee has 90 days from the date of dismissal or the action complained about to raise a personal grievance. The grievance is first referred to the MBIE Mediation Service, and if unresolved, can proceed to the Employment Relations Authority.

Can I use the 90-day trial period to avoid this process in NZ?

The 90-day trial period applies only to employers with fewer than 20 employees and must be in the written employment agreement from the start. Even with a trial period, dismissal must be in good faith -- it is not a blank licence to dismiss without reason.

Find Employment Lawyers and HR Consultants on Find A Professional NZ

Visit www.findaprofessional.co.nz to find employment lawyers and HR consultants who help NZ employers manage performance, misconduct, and dismissal correctly.