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:
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.