An employee derails a disciplinary process. Or maybe they stole from you and you can prove it. But what if you missed a step in the process? Under the old law, one missed step could still have cost you the case anyway.
This is Part 3 of our three part series on the Employment Relations Amendment Act (ERAA). Since 21 February 2026, the same reforms that reshaped contractor law have also rewritten what an employee gets awarded when their own conduct helped cause the grievance.
Join host Sanam as she breaks down the new two-tier contribution structure. From what changes when an employee's conduct contributed to their own dismissal, to what the cases are already showing us, all the way through to the questions you sent through for us to answer.
In this episode we cover:
The two-tier contribution structure introduced this yearSection 123B, the full remedy exclusion for serious misconduct contributionWhy lost wages can now be reduced by up to 100%The new obstruction factor under Section 103A and the end of "minor" procedural defectsWhat "deliberate" means when it comes to serious misconduct, and what the case law is already showingWhy vague policies are now a genuine liabilityYour questions on obstruction, procedural gaps, and defining serious misconduct in your own agreementsMentioned in this episode:
The Employment Relations Amendment Act 2026, which sets out the two-tier contribution and remedy structure and the updated justification testCMA Law's case note, What Counts as Deliberate: The Johnstone Case and the New s 123B, covering Insight New Zealand 2007 Ltd v Johnstone [2026] NZEmpC 101Frontline Law's commentary, A Significant Shift: Understanding the 2026 New Zealand Employment Law Overhaul, on the risk of the new remedy structure creating a licence to be sloppyRNZ's coverage of the Qube Ports case, ERA finds Qube wrongly fired port workers who refused to work with a colleague they deemed unsafeCheck out the Law Lenz website lawlenz.co.nz
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Disclaimer: The content presented in this episode is for informational purposes only and should not be considered as legal advice. The host does not assume any liability for actions taken based on the content of this podcast. While the host is a lawyer, they are not your lawyer and the information provided is based on general legal information. This podcast does not create a solicitor-client relationship.While we strive to keep the information accurate and up-to-date as at the date of each episode, laws and regulations may change, and the content of this podcast may not reflect the most current legal standards or interpretations. Listeners are encouraged to consult with a qualified New Zealand legal professional for advice tailored to their specific situation.