PERFORMANCE REVIEWS: WHAT EMPLOYERS AND EMPLOYEES SHOULD KNOW
Performance reviews are a normal part of employment, whether an informal check-in, a formal annual review, or a targeted process like a performance improvement plan (PIP) when concerns arise. Handled well, reviews build trust and give both sides clarity. Handled poorly, they can quickly turn into a personal grievance.
Why this matters in Central Otago
Employment enquiries are a steady part of our practice at Checketts McKay Law. Seasonal industries such as tourism, hospitality and horticulture mean many local employees and employers navigate performance conversations without much prior experience, particularly in smaller businesses where there's no dedicated HR function and the owner is running the process themselves.
What employers owe employees
Under the Employment Relations Act 2000, employers owe employees good faith throughout any performance process. That means being open about specific concerns, giving a genuine opportunity to respond, and properly considering what the employee says before deciding anything. Feedback should be specific - vague comments like "your attitude needs work" don't meet this standard on their own. Where a review escalates into a formal process, it should set out clear, achievable goals, a defined timeframe, and the support on offer, whether training, supervision or adjusted duties, along with what success looks like at the end.
Employee rights during the process
Employees can ask for specific examples and dates behind any concern raised. They can bring a support person or union representative to meetings, and are entitled to reasonable notice rather than being called in on the spot. They don't have to agree to anything in the room and can take time to respond in writing.
Process matters as much as substance
For employers, this cuts both ways: a fair process matters on its own, separate from whether the underlying performance concern was justified. A dismissal can still be successfully challenged on process grounds alone, even where the performance concern had some basis. Employees generally have 90 days to raise a personal grievance (12 months for more serious matters), so early advice benefits both sides.
When to get legal advice
Employees should get advice early if a review seems connected to something else - a planned restructuring, a personality clash, or a complaint made earlier - or if it follows soon after raising a health, disability or wellbeing issue. Employers should get advice early too, particularly where the reasons behind a process are contested, to make sure it's fair and the paper trail will hold up if challenged.
Whichever side of the process you're on, our employment law team at Checketts McKay Law can help you navigate it with the right advice at the right time.
By Karleigh Hoera, Senior Associate and Emma Tompkins, Solicitor. September 2026