Workplace Restructure or Redundancy

A redundancy occurs when your job is no longer required, which may result in termination. Employers turn to redundancy only for genuine business reasons, such as new technology, changed operating methods, shifting customer needs, loss of suppliers or markets, or financial difficulties. It must never be used as a disguised way to address poor performance—that requires a separate process entirely.

Your employer must treat redundancy as an absolute last resort. They are legally obliged to follow a fair process rooted in good faith, meaning they must be open, transparent, and responsive. This includes running a formal workplace change process and actively exploring every option for redeployment to another suitable role.

Consultation is compulsory and must be meaningful, not just a tick-box exercise. Your employer has to give you a detailed written proposal spelling out the proposed change and how it affects your role. You then get reasonable time—usually 5 to 10 working days, sometimes longer—to study it, give feedback, and suggest alternatives like job-sharing or retraining. They must genuinely consider what you say before deciding anything final.

The written proposal must cover the business rationale (the “why”), which roles are affected, the proposed new structure, a timeline, and any objective, non-discriminatory selection criteria for new positions. You’re entitled to all relevant details to help you respond properly, though some commercially sensitive material or another employee’s private information may remain confidential.

Yes, absolutely. You may bring a support person or representative—such as a lawyer or union delegate—to any meeting. If the situation is causing you stress, you might also qualify for sick leave or reasonable adjustments. Employers should offer practical help too, like access to an Employee Assistance Programme (EAP) or counselling.

New Zealand law does not automatically require redundancy compensation. You only receive it if your individual employment agreement, workplace policies, or collective agreement explicitly provide for it. If such a clause exists, your employer must honour it.

Redeployment means your employer tries to place you in another role. If they offer a suitable alternative position—one that is broadly similar in pay, location, and skills—and you turn it down, you could lose your contractual right to redundancy pay, depending on the wording of your agreement.

You must receive the full notice period stated in your agreement (typically 1 to 4 weeks) and be paid for it. Your final paycheck must include payment for any unused annual leave and other entitlements. This payment is due on your last day or, at the latest, the next normal payday.

If you believe the redundancy was handled unfairly or amounted to unjustifiable dismissal or disadvantage, you can raise a personal grievance. You normally have 90 days from the event to do this. Start with free, confidential mediation through the Employment Relations Authority (ERA). If successful, you might receive compensation for lost wages or distress, or even reinstatement.

Yes, if you work in certain specified categories (for example, cleaning or security) and the business is sold or transferred, you can elect to transfer to the new employer on exactly the same terms and conditions. This is sometimes called a technical redundancy, and because your employment is treated as continuous, you do not receive redundancy payments from the old employer. For everyone else, your agreement must include an employee protection provision setting out negotiation steps for transfer or entitlements.