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Redundancy NZ – A redundancy occurs when an employer’s position is deemed surplus to business requirements. The grounds to dismiss an employee from their position must be founded upon specific criteria that pertain to the business itself.

It’s important to note that in cases without a redundancy clause in the employment agreement, an employer is entitled to make you redundant without compensation. Despite this, there are some occasions where a redundant employee is entitled to compensation through the Employment Relations Authority.

If you feel like your redundancy was based on irrelevant criteria, or a failure to follow the established redundancy process, then you should talk to us.

How does redundancy work?

The employee redundancy consultation process is as follows:

  • Potentially redundant staff are selected, based on fair and relevant criteria that pertain to business activity.
  • A proposal of changes and all accompanying information is distributed to the affected staff for their input. Sufficient time is given for a response.
  • All feedback is considered before the final structure is decided upon.
  • Communicate the final structure, together with timelines for implementation.
  • Affected staff attend individual meetings to identify and discuss opportunities for them to remain employed by the organisation.
  • If no other roles have been identified, adequate notice of termination is given in accordance with the terms of the employment agreement.
  • Career counselling, training and support, and assistance with job hunting are offered.

Redundancy Law Advice: What to do when made redundant?

The first step is to look at your employment agreement for what it says on redundancy.
You could have a case to raise a personal grievance if what you experienced failed to match what was agreed upon.

Furthermore, it can be good to contact an employment law expert to look over your contractual provisions. We’ll ensure every part was written in adherence to New Zealand employment law. A second, experienced set of eyes could be the difference-maker as you pursue an unfair redundancy payout at the Employment Relations Authority.

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About Technical Redundancy NZ:

A technical redundancy occurs when a business is sold and the purchaser offers employment on the same terms. Redundancy law NZ states that employment agreements cease to continue with the sale. In this common scenario, employees find themselves technically redundant.

Employment agreements that contain redundancy clauses usually include a caveat: that employees will not be entitled to compensation when electing to not continue on with the new owner.

Employment Law and Redundancy Compensation

Any term in an employment agreement providing for redundancy compensation is a matter for negotiation between employers and employees, usually at the commencement of employment.

If agreed, the amount and method of payment should be included or referred to in the agreement. Legal redundancy pay adheres to the agreement, avoiding the future possibility of disagreement.

The parties may agree that there is no entitlement to redundancy compensation, in which case there is no obligation for the employer to pay compensation in the event of redundancy.

Has Your Employer Followed Due Process?

The employer has an obligation to act in good faith, such as:

  • Calling formal meetings with at least 24 hours’ notice
  • Advising employees that they can have a support person with them.

The notice of a redundancy meeting must include all information about the reasons leading to their decisions. As an example: if you were made redundant without notice, then the employer has not have acted in good faith and you may be able to make a personal grievance claim against them.

Unfair Redundancy NZ Law: The Next Step Is to Contact Us.

0800Dismissed are here to help you. We’ll advise if you have a valid redundancy case or not and provide advice and advocacy throughout the entire process.

The first step to an unfair redundancy payout is to raise a personal grievance for unfair dismissal. Please don’t hesitate to contact us for a free consultation, or read more about our No Win, No Fee contingency.

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A member of The Employment Law Institute of New Zealand. ELINZ Represents Employment Law Professionals Nationwide.