Employment Court strikes out challenge filed by woman adjudicated bankrupt

Chief judge also denies requests for stay and interim non-publication

Employment Court strikes out challenge filed by woman adjudicated bankrupt

The New Zealand Employment Court struck out a challenge brought by a woman adjudicated bankrupt on 12 February 2026 for lack of standing, as well as denied her interlocutory applications for a stay and interim non-publication. 

The case numbered [2026] NZEmpC 195 arose from a determination by the Employment Relations Authority (ERA) on 23 January 2026. Before the Employment Court, the plaintiff challenged the ERA determination on 19 February 2026. 

According to the plaintiff, she was pursuing orders challenging the bankruptcy decision before the High Court. She alleged that the Employment Court proceedings should continue while she took those steps and applied for a stay. 

The plaintiff also applied for an interim non-publication order over her name and identifying details until the outcome of her proposed challenge. She claimed that she needed this order to protect her reputation. 

Official assignee’s position

The official assignee advised that they did not consent to the plaintiff commencing and pursuing a claim before the Employment Court. The official assignee added that it would not object to the striking out of her claim. 

The plaintiff opposed ending the Employment Court proceedings. 

Defendant’s position

The defendant objected to the continuation of the challenge and the plaintiff’s two interlocutory applications for a stay and interim non-publication. The defendant asserted that the ERA determination was publicly available online.

Challenge struck out for lack of standing

Chief Judge Christina Inglis of the Employment Court explained that the official assignee, not the plaintiff, had the right to bring the challenge because the plaintiff had been adjudicated bankrupt before the filing of the challenge. 

The court clarified that the plaintiff could potentially pursue a challenge if her proposed steps before the High Court would change her bankruptcy position and if the official assignee changed their position. 

Employment Court denies stay

Given that it struck out the challenge, the Employment Court also declined the stay application. The court pointed out that it would not have granted the stay on its merits. 

The court explained that the possibility that her planned steps before the High Court of New Zealand would alter her bankruptcy position was insufficient on its own. 

The court added that the defendant’s interests and the overall interests of justice favoured denying a stay. 

Interim non-publication declined

The Employment Court dismissed the application for interim non-publication. Because it struck out the challenge, the court found no ongoing substantive proceedings requiring interim non-publication protection. 

The court held that it would generally not order non-publication if a dispute was already in a published determination in the public domain. 

Lastly, the court reserved the issue of costs. 

Employment Court’s prior cases

Here are some other decisions by the Employment Court of New Zealand. 

On 5 August 2026, the Employment Court issued an interim injunction in favour of an employee suspended by the Public Service Commission, given the proceedings’ novel and complex issues in the intersection of employment law, natural justice, and national security. 

In litigation initiated by a former employee against their previous employer, the Employment Court made a 28 July 2026 decision finding no important legal question such that the worker could “leap frog” the investigation straight to an Employment Court hearing. 

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