Employee ERA costs uplift: when the Authority increases costs awards

Costs awards for employees in the ERA

A successful employee in the Employment Relations Authority (ERA) can seek a contribution to costs. It is important to understand that costs in the ERA are usually a contribution (not full reimbursement), and the starting point is the Authority's daily tariff approach.

Example: costs uplift after employer conduct increased time and expense

As an example we refer to WATERS v S.T.L LINEHAUL LIMITED [2021] NZERA 350. STL Linehaul Limited was ordered to pay $17,000 compensation. The costs award that followed came to the amount of $9,071.56. Costs were uplifted from the daily tariff. The points raised in that decision included:

• STL was unsuccessful in applying to have the employee representative removed from representing Mr Waters.
• STL attempted on an informal basis to remove the substantive matter to the Employment Court. This was unsuccessful.
• STL failed to file witness statements as per timetable directions.
• Further difficulties arose in getting a signatory to the dismissal decision to give evidence. That did not eventuate.
• Other witnesses of STL gave evidence that was inconsistent with the witness statements that had been filed. This increased the duration of the hearing.

Dealing with these kinds of issues in an ERA matter will often result in costs being increased and uplifted. Where an employer pursues additional steps that do not succeed (for example, an application to remove a representative), that can be taken into account on costs after the substantive decision.