Some Rotorua Aquatic Centre staff are threatening legal action against the Rotorua Lakes Council.
A lawyer's letter has been sent to the council asking for it to pause its process and enter mediation to discuss a way forward.
It says it has been instructed by staff who are members of the Northern Amalgamated Workers Union to file the matter in the Employment Relations Authority, seeking both "interim and substantive relief", if the council does not halt the process.
The council has told the Rotorua Daily Post in a statement it will not be commenting on the legal action.
Ten of the 38 staff members at the Aquatic Centre are to lose their jobs after the council decided to outsource the management of the pools to Community Leisure Management (CLM).