If you have been made redundant, and you feel the process was not fair or that the redundancy was not genuine, you must raise a personal grievance within 90 days. If you don’t your employer doesn’t have to do anything about your complaint.
There should be a genuine reason.
Sometimes employers use ‘Redundancy’ to dismiss staff when they don’t have grounds for dismissal.
If your employer is facing hardship they must enter into a consultation process where you are told your position could be made redundant and given the chance to provide feedback. You can counter the proposal with your own suggestions such as taking a pay cut, leave without pay or changing the role to include other work.
If your employer says the business is struggling and if you are the only person who is facing the redundancy process then it may not be genuine. Your employer can’t employ a new person to do the same job as you, but they may be able to combine two jobs. They can’t make you redundant and then advertise for someone to fill your role.
It is a genuine redundancy if a person’s employment has been ended because their employer has decided, for ‘genuine reasons’ that the employee’s job is no longer needed. A ‘genuine reason’ could, for example, be that the employer is making changes to enable the business to operate more efficiently and cost-effectively; or closing down or selling the business.
Minor alterations to a job’s role and responsibilities should not be a reason for redundancy.
Check your Employment Agreement
What does it say about redundancy in your Employment Contract? You should always make sure you are familiar with the terms of the employment agreement. This will usually have specific provisions dealing with the redundancy process and any entitlements.
Redundancy Payments
Under New Zealand law it is not compulsory for an Employer to pay redundancy compensation. Check Your Employment Agreement:
If your employment agreement mentions redundancy compensation, it will probably also show what the amount of compensation will be. If there is no mention of the amount it could be up for negotiation.
Notice of redundancy
If there is no specific clause in an employment agreement giving a period of notice in a redundancy situation, ‘reasonable notice’ must be given. The length of ‘reasonable notice’ depends on a variety of factors, such as:
- the reason for the redundancy
- the employee’s length of service
- the employee’s seniority and/or remuneration package
- custom, practice and industry norms
- the employee’s ability to find alternative employment
- the amount of compensation being paid (if any).
A ‘reasonable’ notice period is usually two weeks to a month.
The decision must be about the position and must not be about an individual employee personally. The employer cannot use redundancy as a means of getting rid of under-performing employees or disciplining employees for misconduct.
New Zealand’s Redundancy Process
When can a person be made redundant?
- The position must be superfluous to the employer’s needs.
For example, where a larger number of employees are employed than necessary to operate the business efficiently, certain positions may be disestablished. - The position must actually disappear. The employer cannot claim redundancy by changing a job description slightly or employing new employees to undertake the same or a similar position.
- The business is closing down
What is the process for making a person redundant?
Your employer must follow the proper process when they need to make you redundant.
Restructuring or redundancy must be carried out in good faith and your employer must not mislead or deceive you.
Your employer must;
- Give you written notice of a discussion/meeting. The letter should say that the meeting is to discuss redundancy or restructuring ;
- tell you the reasons for the proposed changes, and how they will affect your job;
- consult with you and anyone else who may be made redundant;
- give you a chance to get independent advice, and to have a representative or support person with you when you attend the meeting to discuss your possible redundancy or restructure;
- consider your suggestions before they make any decision about their proposed changes; and
- consider alternatives to making you redundant e.g. giving you a job elsewhere in the company or reducing the hours you work.
If the redundancy is false and amounts to an unfair dismissal we can pursue a grievance on your behalf.
We can help you with all aspects of redundancy.
It’s free to discuss your situation with us.
What does redundancy mean?
To be made redundant from your job position means that your position is no longer needed in the company. Redundancy is a type of dismissal. This may be due to a company re-structure or shifts in the economy or job industry.
What am I entitled to?
Throughout the redundancy process as an employee, you are entitled to seek legal advice, negotiate and provide feedback to the employer.
It is important that you have read and fully understood your employment agreement. Your notice period will be outlined in this agreement along with information regarding final pays. Generally, an employee will be paid our their annual leave once the redundancy has been finalised.
What is the redundancy process?
Your employer must notify you in writing that your position may be up for redundancy. You should be supplied with a letter/notice of redundancy that asks you to attend a meeting with your employer.
The employer must explain the situation to you and give you adequate time to process the news, seek legal advice and provide feedback. Feedback can be where the employee offers a reduction in hours, pay or other factors of your role. Although this may not save your job, it is a good chance to negotiate your redundancy in the case these offers change anything on the employers’ end.
Once you (the employee) has had the opportunity to provide feedback and seek legal advice the decision now sits with the employer. You will receive confirmation of your redundancy and you will start working out your notice period (check your employment agreement).
CONTACT US FOR A FREE CASE EVALUATION
You can trust us to listen
Statistics prove that legal representation for employees by an employment lawyer or employment law advocate improves your chance of a successful outcome.
You have nothing to lose by having a free consultation with an Employment Law Advocate.
You can email us using the form below. When you receive the automated reply to your email please reply and attach any correspondence you have received from your employer.
What our clients are saying
I am incredibly grateful for the support and guidance I received from Hilary and the team at Work Law.
I found myself dealing with a very stressful employment situation and felt completely out of my depth. From my first conversation with Hilary, I felt heard, supported, and reassured that I didn’t have to navigate everything on my own. Throughout the process, Hilary was professional, knowledgeable, patient, and always willing to answer my questions. She explained things clearly, kept me informed, and provided support during what was a very difficult period. What impressed me most was the genuine care she showed. I never felt like just another case file. She took the time to understand my situation and worked hard to achieve a fair resolution. I cannot thank Hilary enough for her dedication, expertise, and advocacy. The outcome has allowed me to move forward and focus on the future. I would highly recommend Hilary and Work Law to anyone needing help with an employment matter. Thank you again for everything.
I would highly recommend Sandy to anyone needing an employment advocate
I had a truly positive experience working with Sandy Ward during a very challenging and stressful period, and I am so glad I contacted Work Law before resigning out of exhaustion. From our first conversation, Sandy was calm, compassionate and genuinely took the time to understand my situation. She balanced empathy with professionalism, providing thoughtful, measured advice throughout the process. She made a difficult situation feel manageable and gave me confidence when I needed it most. Sandy’s communication was outstanding—clear, pragmatic and outcome focused. She combines genuine warmth with strong resolve and is clearly an exceptionally skilled & experienced advocate who is not going to be intimidated while negotiating! I felt I had someone firmly in my corner who was both compassionate and highly effective. I would highly recommend Sandy to anyone needing an employment advocate, she combines exceptional expertise with kindness, integrity and genuine care for her clients. Thank you Sandy.
Aston is knowledgeable, professional, and genuinely committed to helping his clients.
I highly recommend Aston for employment law matters.
From the beginning, Aston took the time to understand my situation, provided honest and practical advice, and guided me through a very stressful employment dispute with professionalism and care.
What I appreciated most was his straightforward approach and willingness to explain the process clearly. He worked hard to achieve a fair outcome and was always focused on finding a practical resolution rather than creating unnecessary conflict.
I was particularly grateful for his support during a difficult period and for his efforts in negotiating a settlement that allowed me to move forward positively.
If you are looking for an employment lawyer who is knowledgeable, professional, and genuinely committed to helping his clients, I would not hesitate to recommend Aston.
Thank you again for all your assistance.
I recommend Sandy.
Sandy is amazing! Very fast to respond and does a thorough job, trust her a lot and highly recommend her!
I would highly recommend Hilary and Work Law to anyone needing employment advocacy assistance.
I cannot thank Hilary enough for her support during a very difficult and stressful employment matter.
From the very beginning, Hilary was professional, knowledgeable, approachable, and genuinely cared about achieving the best possible outcome for me. She took the time to explain every step of the process, answered my many questions with patience, and provided reassurance whenever things felt uncertain or overwhelming.
What stood out most was that I never felt like just another client. Hilary was always responsive, supportive, and willing to go the extra mile to help me navigate what was a challenging period in my life.
Thanks to her hard work, dedication, and expertise, my matter was successfully resolved, allowing me to move forward with confidence.
I would highly recommend Hilary and Work Law to anyone needing employment advocacy assistance. If you are looking for someone who is knowledgeable, compassionate, and genuinely committed to helping their clients, you will be in excellent hands.
Thank you again, Hilary.