04-08-2025
Rotorua Lawyer Warns MBIE Mediation Backlog Is Costing Businesses
A more than two-month delay for Government mediation services is costing businesses time and productivity as they wait to resolve employment issues, a Rotorua-based specialist employment lawyer says.
Dealing with an employment issue can be a costly and time-consuming exercise for both a business and staff member, but not dealing with it effectively and efficiently could cost both parties even more, workplace law barrister, Michelle Urquhart, says.
This is what local businesses are facing with the current nine-week wait for the Ministry for Business Innovation and Employment's (MBIE) free mediation service.
'Having to wait more than two months for mediation – which is meant to be an early intervention service – is far from ideal in the current economic environment,' Mrs Urquhart says.
'Workplace issues can do a great deal of damage to a public or private organisation, and they don't tend to fix themselves. 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.
'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. Mediation is often key to the success of this.'
Mrs Urquhart says mediation is an invaluable tool to help resolve disputes without the stress, time or cost of an expensive legal process. It also helps build a stronger business, with better communication and sustainable outcomes.
She says the current delays at MBIE for mediation mean increasing numbers of businesses are turning to independent specialists – or are not dealing with the issue at all.
'The second option is a lose-lose for both parties. In the current employment environment, 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.
Mrs Urquhart says businesses looking for external mediation support should look for someone with proven experience, relevant qualifications and professional membership with either the Arbitrators' and Mediators' Institute of New Zealand or the Resolution Institute.
'Industry membership means the adviser has the appropriate qualifications and experience to deliver mediation, while also working under an industry code of ethics.
'This is important, as it gives employees and organisations a level of reassurance they're working with someone who is qualified to help get them on the right track. In a stressful and emotional situation, this benchmark is something people should be looking for.'
And her biggest piece of advice for either an employee or employer?
'Don't wait. Start addressing the issue sooner rather than later and get some help to ensure it's done right the first time.'
