What are my rights when I am made redundant in New Zealand?
Under the Employment Relations Act 2000, your employer must act in good faith during a redundancy process. This includes consulting you before making the decision, genuinely considering alternatives, and providing proper notice. You are entitled to at minimum the notice period in your employment agreement or the Holidays Act 2003 minimum notice provisions.
Is there a statutory redundancy payment in New Zealand?
New Zealand does not have a statutory redundancy payment equivalent to some other countries. Whether you receive a redundancy payment depends entirely on what your employment agreement says. If your agreement includes a redundancy payment clause, your employer must honour it. If there is no clause, you are only entitled to notice and any accrued leave.
What does good faith mean for employers in a redundancy situation in New Zealand?
Good faith under the Employment Relations Act 2000 requires your employer to be active and constructive in maintaining a productive employment relationship. In a redundancy, this means providing you with relevant information about the proposed changes, giving you a genuine opportunity to comment before the decision is finalised, and considering your feedback before deciding to make your position redundant.
Can I challenge a redundancy if I think it was not genuine in New Zealand?
Yes. If your employer created redundancy as a pretext to dismiss you, or did not follow a proper consultation process, you may have a personal grievance for unjustified dismissal under the Employment Relations Act 2000. You must raise the personal grievance within 90 days of being notified of the redundancy. The Employment Relations Authority investigates such claims.
What is the consultation process for redundancy in New Zealand?
Before making your position redundant, your employer must provide you with a written proposal explaining the reasons for the change, the proposed changes to your role, and the alternatives considered. You must have a genuine opportunity to respond. The employer must consider your response before making a final decision. Skipping this process is a breach of good faith.
Am I entitled to redeployment before being made redundant in New Zealand?
Your employer must genuinely consider whether there are other suitable roles available before making you redundant. If a suitable alternative position exists and your employer fails to offer it to you, this can support a personal grievance claim. Your employment agreement may also contain a redeployment clause that imposes additional obligations on your employer.
How do I raise a personal grievance for unjustified redundancy in New Zealand?
You must raise the personal grievance with your employer in writing within 90 days of the date you were notified of the redundancy. Your notice should state that you are raising a personal grievance and briefly explain the grounds. After raising it, you can request mediation through the Employment Relations Authority or apply directly to the ERA for investigation.
What is the Employment Relations Authority and how does it handle redundancy disputes in New Zealand?
The Employment Relations Authority is an investigative body that resolves employment relationship disputes. It is not a court but can make binding determinations. For redundancy personal grievances, the ERA will consider whether the employer followed a fair process and whether the redundancy was genuine. Mediation through the Employment Mediation Service is free and must be attempted first.
What remedies are available for unjustified redundancy in New Zealand?
The Employment Relations Authority can award reinstatement, lost wages, and compensation for hurt and humiliation. Compensation for hurt and humiliation in serious cases can be up to NZD 50,000 or more depending on the circumstances. The ERA can also order the employer to pay legal costs in some situations.
How does uplaw.ai help with a redundancy situation in New Zealand?
Tell us about your role, your employment agreement, and how your employer approached the redundancy in the chat. We help you understand your rights under the Employment Relations Act 2000, whether you have grounds for a personal grievance, and how to raise the grievance within the 90-day deadline.
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