New poll reveals 'poor' experiences of employers with employment advocates
Employers in New Zealand have expressed strong support for the regulation of employment advocates amid their "poor" experiences with them, according to a new report.
Three in four businesses polled by law firm Simpson Grierson said they want some form of regulatory framework for employment advocates.
Employment advocates are individuals who offer people assistance in employment disputes, including issues on personal grievances, unfair dismissals, and wage theft.
Advocates, however, are not lawyers who are registered with the New Zealand Law Society, and are not subject to professional regulation, disciplinary oversight, or mandatory competency standards.
"Our survey tells a more complex story: where unregulated advocates are involved, the process becomes more costly, more adversarial, and harder to resolve," the Simpson Grierson report read.
Experiences shared by half of employers polled by the law firm were interpreted as "poor," with common concerns including aggressive and unprofessional conduct and unrealistic settlement expectations.
There was also a widespread perception among employers that advocates were "incentivised" to prolong disputes instead of encouraging early resolution.
"At the moment it's a free for all, Wild West scenario. Anyone can set themselves up as an 'Advocate' with zero qualifications or understanding of the law," one survey respondent said as quoted in the report.
Regulation of employment advocates
A strong theme that the report discovered is that poor advocacy can further harm employees and employers involved in an employment dispute.
Addressing this challenge in the system would need the introduction of some form of regulation of advocates, according to the report's respondents.
This includes minimum competency standards, registration requirements, and a code of conduct. They also want a disciplinary body that has "real teeth."
"Some respondents considered that employment advocates should be removed from the system altogether, or that their role should be limited to that of a support person," the report read.
Those who opposed or were unsure about regulation, however, cited the need to preserve affordable access to representation for employees, the report added.
Employment dispute system consultation
Simpson Grierson's poll comes as the Ministry of Business, Innovation, and Employment (MBIE) launched a consultation on the country's employment dispute system, garnering feedback on whether it is delivering timely, affordable, and fair outcomes.
The poll's other findings include consistent concerns by employers about the system, including the time taken to resolve disputes (71%) and the costs they incur (69%).
As a result of these challenges, some employers said they end up settling before reaching the Employment Relations Authority regardless of the strength of their position.
Simpson Grierson said their findings seek to capture the "employer experience when managing employment disputes" in order to inform its submissions to the MBIE's consultation, which closes on July 31.
"The survey does not suggest employers want wholesale change. Rather, respondents favoured practical reforms focused on improving efficiency, accountability, and confidence in the employment dispute resolution process," it said.
