We are often asked by employees, that want to take a matter to the Employment Relations Authority (Authority), what they are likely to be awarded if they win.
The formula is rather simple for most situations, but not for all. Please use this as a guide only. Particulars of your situation may be different.
So, let's assume that you are a typical employee and that you have an outright win in the Authority. Your award will most likely be:
Contractual Entitlements
Should your employer not have paid you for any time that you have worked (and you are credible in what you claim is the time you have worked and not been paid for), then this amount should be awarded to you. This includes any bonuses or commissions that you can prove are owing. To prove this, you need to be able to show the written agreement for the bonus or commission, plus evidence that you are entitled to it. Any amount awarded is subject to usual income tax.
Statutory Entitlements
Should your employer not have paid you out for your accrued holiday pay or leave entitlements then, as long as you are credible in what you claim, this should be awarded to you. Any amount awarded is subject to usual income tax.
Lost Wages
Lost wages payments are awarded as the lesser of the actual remuneration you lost or three months’ (13 weeks) ordinary time remuneration. So if you are only out of work for five weeks then you can only get an award of five weeks. Should you be out of work for five months then you are still only likely to be awarded the 13 weeks of lost wages.
However, you have an obligation to mitigate your loss by trying to find alternative employment. In other words, if you spend the next 13 weeks at home watching The Simpsons and Judge Judy on Sky TV then you will not be awarded any lost wages. You need to be able to prove to the Authority that you have tried to find work by producing copies of emails of job applications, interviews etc. One or two job applications will not cut it either. Effectively, your full time occupation, once you have lost your job, is finding a new job. If you can't demonstrate this, then don't expect the Authority to award you any lost wages. Any lost wages awarded are subject to usual income tax.
Compensation For Hurt And Humiliation
This figure differs widely for many people depending on what the impact of an unjust termination has had on them. However, Compensation for hurt, humiliation, loss of dignity and injury to feelings varies significantly depending on the actual impact on the employee and the quality of the evidence. Awards have increased materially since 2021. A low-level award may still be modest, but many successful claims now fall in the $15,000 to $30,000 range, with higher awards available where the harm is significant and supported by evidence..
Contribution To Costs
Even if your employer is completely slated by the Authority, the Authority will generally only award you a contribution to your costs and not all of your costs. Currently, the daily tariff they are awarding is an amount based on $4,500 for the first day of the Authority hearing and a further $3,500 for every subsequent day. So, if your matter in the Authority only takes a half-day, then the costs awarded will likely be $2,250. Alternatively, if your matter takes two days to hear, then the figure will likely be $8,000. There is, however, a complication which can radically change the amount of costs awarded. Should either the employee or employer make what is known as a "Calderbank Offer" to the other side, prior to this process commencing, and what is eventually awarded is less favourable than the "Calderbank Offer" for the other side, then the costs can be wildly different.
However, similar to how some people portray their financial position to the NBR so that they can get on the Rich List, there is another side to this equation, which is the cost in taking a matter through the Authority process. The wheels of justice turn slowly. They are not cheap to rotate and sometimes they don't rotate in your direction of choice.
Time
Typically it can take 12-24 months to get through this process and receive a written decision from the Authority on your matter.
Costs
The actual costs vary depending on who you use and how complicated your matter is. We find that our typical costs, for an employee going through this process, are between $12,000 to $20,000 plus GST. In order for you to have a better idea of the likely costs for your situation, please contact us for a more detailed estimate.
Employee Contribution
The Authority must take into consideration the conduct of the employee in the events leading up to the termination. The Authority will ask itself the question, "Has the Employee contributed in any way towards this termination, by their actions?" Since 21 February 2026, contribution can have much more serious consequences. If the Authority finds that the employee’s conduct contributed to the situation giving rise to the grievance, some remedies may no longer be available. If the contributing conduct amounts to serious misconduct, the Authority must not award any remedy. Should the Authority decide it is only misconduct then no orders for compensation or reinstatement can be made. This makes the facts leading up to the dismissal or disadvantage even more important.
Authority Rules In Favour Of Your Employer
Remember that there are no guarantees when you go to court. Should this happen, then you will not be awarded any of the four items as described at the top of this page. However, it could be even worse. The Authority may (again depending on your situation) award costs in favour of your employer. Now, the item above (Contribution to Costs) applies, but in favour of your employer and not yourself. So, not only have you had to pay for your representation, you now need to pay for some of your employer's costs for representation as well.
For the four reasons above, we have an in-depth conversation with our clients before proceeding to the Authority. The cards need to be strongly stacked in your favour before we will proceed. Because of this policy of ours, we have a very high winning rate for cases that has been taken to the Authority on behalf of our employee clients. As of June 2025 it was sitting at a 80% success rate when representing the employee. (I define a "Win" as a determination issued by the Authority that is in favour of my client)
Personally, I don't like losing. This is a stance that has benefited all of my Employee clients we have represented before the Authority. The actual costs to take a matter to the Authority will always be greater than the costs that they award. Each case is different and you need to talk to us directly to get an accurate estimate of what the likely costs would be for your case.
