Sexual harassment issues can be stressful for everyone involved and, if you’re an employer, a failure to manage them properly can lead to serious legal repercussions. For this reason, if you’re a Kiwi employer, you need to be on top of what the latest changes to the Employment Relations (Extended Time for Personal Grievance for Sexual Harassment) Amendment Act means for you.
In short, the period of time in which a complainant can raise a sexual harassment personal grievance with an employer has been extended. As of 13 June 2023, employees in New Zealand now have 12 months to raise a personal grievance related to sexual harassment; a significant change from the 90-day period previously enforced. It acknowledges that raising a sexual harassment complaint can be stressful for victims and that these individuals require adequate time to decide whether they feel comfortable doing so.
The time to notify an employer for all other personal grievances remains unchanged at 90 days. As a Kiwi employer, you must:
- Comply with updated requirements: Employers are not required to amend employment agreements for employees employed prior to 13 June 2023, but must update employment agreements entered from 13 June 2023.
- Understand the consequences of non-compliance: A failure to comply could result in a penalty of up to $20,000. Inaccurate agreements also offer employees a line of defence if they fail to raise a personal grievance for sexual harassment within the legislated period. We recommend ensuring all templated employment agreements are updated to include a reference to the Extended Timeframe.
As a Kiwi employer, you are encouraged to:
- Communicate the changes within your organisation: There is no legal requirement for employers to notify employees about this law change, however, we do recommend doing so in writing, such as via or by email. Doing so demonstrates that you’re a responsible employer.
- Take the opportunity to update existing agreements when you can: If a current employee enters into a new or varied employment agreement with your organisation, we recommend taking the opportunity to also update any clause which refers to the period for raising a personal grievance too.
- Review your company policies: Consider reviewing company policies that refer to the time periods or processes for raising a sexual harassment personal grievance.
- Consider the implications of the Extended Timeframe: The longer timeframe for raising a sexual harassment personal grievance may have practical implications. It could be harder to investigate – and act upon – a sexual harassment allegation if a victim uses the full 12-month timeframe because implicated parties may, for example, have left the organisation or have trouble accurately recalling events.
It’s worth noting that The Employment Relations Amendment Act does not apply retrospectively. If an employee experienced sexual harassment and this had come to the employer’s attention before the Act came into force, the employee will only have 90 days to raise a personal grievance and cannot rely on the Extended Timeframe in relation to that alleged incident.
An exception to this applies if the alleged sexual harassment occurred before the Act came into force but the employee only became aware of it after the commencement of the Act. In this situation, the Extended Timeframe will apply.
We can help
Managing sexual harassment claims can be difficult. If you need support managing personal grievances, we can help. Our initial chat is always free, and if you decide you’d like some independent, impartial, and up-to-date support, you can make use of our qualified HR expertise for as little as an hour, or as long as you’d like. It’s up to you.