Part 3 - ERAA 2026: What's Considered Serious Misconduct & Contribution Today?

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 year • Section 123B, the full remedy exclusion for serious misconduct contribution • Why lost wages can now be reduced by up to 100% • The new obstruction factor under Section 103A and the end of "minor" procedural defects • What "deliberate" means when it comes to serious misconduct, and what the case law is already showing • Why vague policies are now a genuine liability • Your questions on obstruction, procedural gaps, and defining serious misconduct in your own agreements Mentioned in this episode: • The Employment Relations Amendment Act 2026 (https://www.legislation.govt.nz/act/p...) , which sets out the two-tier contribution and remedy structure and the updated justification test • CMA Law's case note, What Counts as Deliberate: The Johnstone Case and the New s 123B (https://cmalaw.co.nz/what-counts-as-d...) , covering Insight New Zealand 2007 Ltd v Johnstone [2026] NZEmpC 101 • Frontline Law's commentary, A Significant Shift: Understanding the 2026 New Zealand Employment Law Overhaul (https://frontlinelaw.co.nz/blog/nz-em...) , on the risk of the new remedy structure creating a licence to be sloppy • RNZ's coverage of the Qube Ports case, ERA finds Qube wrongly fired port workers who refused to work with a colleague they deemed unsafe (https://www.rnz.co.nz/news/top/594786...) Check out the Law Lenz website lawlenz.co.nz (https://www.lawlenz.co.nz) Want to book a workshop? Book a Clarity Call HERE! (https://www.lawlenz.co.nz/book-a-clar...) Don't miss our updates and legal insights! Sign up to the Law Lenz Newsletter! CLICK HERE (https://www.lawlenz.co.nz/newsletter) ! Follow Sanam on LinkedIn (  / sanam-a-salmani  ) for key employment law updates. Got questions? Email them to [email protected] (mailto:[email protected]) 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.