Redundancy - your rights and options
Being made redundant can be one of the most stressful events in your life. In some cases, you may have little warning that your job is about to end, in others you may have weeks or months of rumours, and negotiations with your employer, before an announcement is made.
Either way, redundancy is a difficult and emotional process. However, unplanned change can also create opportunities. Knowing your rights and your options can help you through this process.
On this page
I’ve heard rumours of redundancies at work – what should I do?
If you are worried that your job may be on the line, make an appointment to talk to your supervisor. That way you can get a definitive answer, or, failing that, at least get a sense of whether redundancies are a possibility.
Can I reduce my chances of being made redundant?
Being flexible and adaptable at work may decrease your chances of being made redundant. This could mean taking on new tasks or working different hours. By being flexible you increase the opportunity for your employer to find ways to keep you on, perhaps in a different role. You could also suggest changes to your current role that would improve profitability or effectiveness.
There’s a chance I could be made redundant – what can I do to prepare for it?
Avoid making any major decisions about your future until you are sure of your employer’s plans. However, it can help to prepare yourself by researching your options in the case of redundancy. You may never need to act on this research, but by preparing yourself you’ll become more positive about the prospect of change.
Does my employer have the right to terminate my employment?
You can only be made redundant for genuine commercial reasons that mean your position is no longer needed. This can be due to:
- a decline in available work
- restructuring, including contracting out work
- sale or transfer of the employer’s business.
When can't my employer make me redundant?
- If you think your redundancy or dismissal is unfair, try talking to your manager about your concerns
An employer can’t use redundancy as a way of dismissing you for reasons relating to you personally, such as:
- concerns about your performance or reliability
- your age - there is no compulsory retirement age, unless it is specified in your employment agreement.
Your employer also cannot:
- put pressure on you (directly or indirectly) to resign
- make the situation at work intolerable for you.
This is known as a forced resignation. If this occurs, you may have grounds to file a personal grievance claim.
Does my employer have to give me advance notice of redundancies?
If an employer is planning to cut staff, they are legally required to tell you how many staff they plan to lay off, where those jobs will be cut, and how they will run the redundancy process - including how they will decide who will lose their jobs. They should also give you time to consider and comment on those criteria.
Many employment agreements set out guidelines for what the employer must do in the case of redundancy – check to make sure these have been followed.
However, in some cases decisions are made quickly – such as when a business closes or needs to make mass redundancies – and you may get little warning of your employer’s plans.Will I get compensation if I am made redundant?
You are entitled to redundancy compensation only if it is outlined in your employment agreement.
Can I challenge a redundancy or dismissal?
If your employment is terminated because of a redundancy or dismissal and you think you’ve been treated unfairly, you can challenge your employer’s decision. Before doing this, you may want to get advice from:
- a community law centre
- Citizens Advice Bureau
- the Department of Labour.
- Citizens Advice Bureau website - contact details
- Coalition of Community Law Centres website - find your nearest community law centre
- You can raise a personal grievance claim by writing a letter to your manager
1. Raise a personal grievance claim
As a first step, you may raise a personal grievance claim with your employer. This must be done within 90 days of the redundancy or dismissal.
You can raise a personal grievance verbally, but it is best to write a letter outlining your problem and desired outcome to the head of your organisation, or your manager.
You can't raise a personal grievance if you are employed on a 90-day trial.
2. Seek help from a mediator
If you and your employer can’t come to an agreement, you may get an external mediator to help. A mediator can help you identify problems and look for ways to resolve the disagreement.
This option is also available for people employed on a 90-day trial.
3. Take your case to the Employment Relations Authority or Employment Court
If you and your employer fail to reach an agreement with the help of a mediator, you may take your case to the Employment Relations Authority or Employment Court so that they can determine the outcome.
What protection do I have from redundancy?
- Workers such as cleaners have extra protection during a restructure
In most cases, your employment agreement will define what protection you have from redundancy. However, certain workers have extra protection if a business changes owners and is restructured. They are:
- cleaners
- food catering workers
- orderlies in hospitals or rest homes
- laundry workers in hospitals, rest homes or educational institutions
- caretakers in educational institutions.
People in these jobs have the right to transfer to the new employer on their existing terms and conditions of employment.
Find out more
Other websites
- Business.govt.nz website - ending an employment relationship
- Coalition of Community Law Centres website - a guide to resolving employment problems (PDF - 1.32MB)
- Department of Labour website - links to information on employment agreements and solving problems in the workplace
- Employers and Manufacturers Association website - redundancy guide (PDF - 263KB)
- NZ Herald website - your rights: made redundant without warning
- NZ Human Rights Commission website - human rights and redundancy
