Source: EMA
The Employers and Manufacturers Association (EMA) is calling for a review of the employment disputes resolution system and especially the conduct and regulation of employment advocates, following a survey of more than 300 of its members.
Employers pointed to an escalating number of disputes, rising costs, longer case durations, and increasingly adversarial behaviour by employment advocates as growing issues within the system.
EMA Head of Advocacy and Strategy Alan McDonald says the findings show a system “under increasing strain”.
“Employers are telling us the process has become overly complex and burdensome,” he says.
“Disputes are taking longer to resolve and costing far more than they used to. Even when businesses do everything right, many feel pressured to settle early because the cost of defending a claim can be higher than the actual claim.”
Unregulated employment advocates labelled ‘ambulance chasers’
Respondents highlighted the growing influence of unregulated advocates, particularly those operating on ‘no-win, no-fee’ models, citing aggressive or unprofessional behaviour, process delays, inflated settlement demands, high fees for low-quality work, and advice that fuels unnecessary escalation.
“We heard employers describe some advocates as ‘cowboys’ or ‘ambulance chasers’ – strong language that reflects genuine frustration,” says McDonald.
“The common theme is a lack of professional standards. Anyone can call themselves an employment advocate, charge whatever they like, and face no consequences for unethical behaviour.”
Employers also reported that advocates’ fees increasingly become the driving factor in settlement negotiations, with some representatives pushing for their own costs to be covered before meaningfully representing the employee’s interests.
The emergence of AI-generated correspondence – described by some employers as lengthy, inaccurate, or contextually misleading – is also contributing to delays and rising expectations.
The survey drew more than 150 responses in the first few hours and 316 responses overall, indicating strong concern among employers about how the system is operating in practice.
“The speed and volume of the responses show we really hit a raw nerve for employers,” says McDonald.
The EMA is sharing the findings with MBIE, and joining a number of organisations urging the government to review the disputes mediation process and introduce appropriate regulation of employment advocates.
“We want to see accountability for advocates. Employees deserve competent, ethical support, and employers deserve a fair, efficient system they can have confidence in. This shouldn’t be the Wild West,” says McDonald.
The EMA is calling for clear standards that would help protect both employees and employers, reduce unnecessary escalation, and restore trust in a system that many believe is no longer working as intended.
“This survey shows the pressure points clearly. If we don’t act now, the costs, delays and adversarial behaviour will only get worse,” says McDonald. “Regulation of employment advocates is the logical place to start.”
