Workplace change process

First thing's first, employers cannot make someone go through a redundancy without going through the workplace change process first.

Employment NZ's workplace change process outline

Then to end an employment relationship, you must be given notice by your boss.

Redundancy should be a last resort!

Your employer should only consider redundancy, and payment of compensation as a last option. It should only happen after all options to keep you on the team or in the company have been exhausted.

If your boss isn't able to keep you in the company, they should offer you all of the support that's mentioned in your employment agreement or workplace policies.

Things you should consider include:

  • checking that your boss has explored all redeployment options.
  • checking what date the job is to finish. Could you continue working while other options are explored?
  • support which may include:
    • counselling
    • Curriculum Vitae (CV) or Resume support
    • interview skills training
    • other training that may improve the employee's chances of future employment
    • career advice

Notice of redundancy

If there is no specific clause in your employment agreement giving a period of notice in a redundancy situation, ‘reasonable notice’ must be given. The length of ‘reasonable notice’ depends on a bunch of things, like:

  • the reason for the redundancy
  • your length of service
  • your seniority and/or remuneration package
  • custom, practice and industry norms
  • your ability to find alternative employment
  • the amount of compensation being paid (if any).

Final payments

Remember that any unused annual leave and salary, along with any other entitlements, must be paid out to you in your final pay.

Redundancy compensation

Whether you receive redundancy payments depends on what it says in your employment agreement and is a matter for negotiation between you and your boss. However, all employees whose employment is ending due to redundancy must be given notice in terms of the employment agreement. An employer can require you to work out your notice.

If there's a question you can't find the answer to,
head on over to our Free Help page, tell us what
you need help with, and we’ll get back to you asap!