An employment lawyer is recommending businesses to avoid using the government’s free employment mediation service.
Currently, there is a seven-week waiting list to use the Ministry of Business, Innovation, and Employment’s mediation service, which is intended to help prevent lengthy disputes between employers and employees.
However, Rotorua employment lawyer Michelle Urquhart suggested not to wait, noting that the expense of using private services is well justified considering the risks of allowing a dispute to linger.
MBIE explained that availability was limited because of high demand and apologised for the inconvenience but noted that the current wait time is an improvement from the peak 11-week delay experienced in February.
“There has been a sustained demand for employment mediation services, with a 12% increase in mediations delivered in 2024/25 compared to the previous year,” MBIE director Pele Walker said.
“Mediators report that the complexity of issues being brought to mediation has increased, contributing to longer sessions and more time needed to reach resolution.”
Urquhart said it was more than just an inconvenience for businesses, as the longer an issue remained unresolved, the more complex and expensive it became.
She said the delay has led more businesses to either seek help from independent specialists or avoid addressing the issue at all.
Urquhart said, considering the current labour market conditions, the second option results in a lose-lose situation for both parties.
She advised that those involved in a dispute should seek assistance promptly, even if it means paying for private services.
“No one wants to be looking for a new job. For an employer, it can cost up to 1.5 times a person’s salary to replace them, including recruitment, onboarding and lost productivity.”
“A dispute will initially impact the people directly involved, but it doesn’t take long for it to start impacting wider teams, productivity, morale and ultimately, the bottom line,” Urquhart said.
“Getting on top of the concern early, having calm conversations, and developing a resolution plan that works for everyone is critical to moving forward before too much damage is done.”