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Friday, October 9, 2026

Unregulated employment advocates 'causing severe emotional distress', law institute says - Newshub

Some people who have lost their jobs are being crippled by unexpected and exorbitant fees charged by their employment advocates.

These advocates use no-win, no-fee contracts, failing to state up front what they do charge for a successful outcome - and there is no requirement for them to do so.

There are reports of advocates charging 40 percent of a client's settlement, and setting debt collectors on to them to pay up.

Employment advocates perform a similar role to lawyers in disputes, but their clients have no complaints avenue if things go wrong.

The Employment Law Institute was set up more than two decades ago to offer self-regulation.

Its president, and advocate, Kelly Coley, said some people who were already financially vulnerable, without a job, were being fleeced and chased by debt collectors.

"There's quite a few I know of where the consumer owes money to the advocate and there might be a dispute around that," she said.

"In terms of getting debt collectors on to them people are very concerned about their credit ratings and what I see the most of is just quite severe emotional distress."

Any lay person can be an employment advocate, there's no need for training and no compulsory code of conduct.

Coley said in one case a consumer had approached her but had no real avenue for complaint given the sector was unregulated.

"An advocate rang up and abused, racially and verbally, a consumer. They [the advocate] had told them they weren't going to run their claim then yelled...



Read Full Story: https://www.newshub.co.nz/home/new-zealand/2022/07/unregulated-employment-adv...