The Front Page: What is the Employment Relations Authority - and is it working?

The Employment Relations Authority generates a number of headlines - but how does the process work? Photo / 123RF

It seems that almost every week another story emerges about an employer behaving badly and having to make a significant payout to an employee.

Most of the stories come from the dispute decisions released by the Employment Relations Authority (ERA) and they provide a glimpse at what happens when things go wrong in the workplace.

Recent cases include a former Armourguard driver whose list of complaints against his former employer included colleagues speaking their native language in front of him, a hairdresser fined after getting a woman hired to sweep the floors to cut client’s hair, and a former site manager at a building removal firm, who received $21,000 in lost wages and compensation after getting fired - but would have received more if he hadn’t told his boss to “get f****d”.

While some cases often get attention for the humour or quirkiness involved, Open Justice reporter Tracey Neal told The Front Page that there is a balance between the “quirky” cases and ones that are representative of a broader picture.

Over the last decade, she estimates that the 22 members of the ERA have heard around 8,000 cases - with 1,183 cases heard in 2010, while a little over 600 have been heard so far this year.

The changing job market has likely contributed to the drop in cases.

“People are more at liberty now to leave a role they don’t like, rather than stay on and fight,” Neal said.

However, for those who do choose to take a case to the ERA, employees could face up to $20,000, and while the ERA can make a ruling, it can’t enforce, so it can be tricky to actually get your compensation if you do win.

“The cost is hiring the lawyer and the cost is also in the actual hearing, which can be a day or two long. it’s a big whammy if you lose, because not only are you left with the egg on your face, but you have to pay a reasonable portion of costs worn by the other side, including the cost of the hearing.”

Listen to the full conversation below on what the ERA actually does, why there has been an increase in non-publication orders over cases, and Neal’s own experiences going through the ERA - and if it’s worth doing so in the end.

• The Front Page is a daily news podcast from the New Zealand Herald, available to listen to every weekday from 5am. • You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify, or wherever you get your podcasts.