# Redundancy Official source: https://www.employment.govt.nz/ending-employment/redundancy Scanned: 2026-06-07T03:31:31.402Z Use this as a current official guidance reference, not as a substitute for legal advice. ## Page Text Home Ending employment Redundancy Ending employment Ending employment Resignation Retirement Giving notice Redundancy Dismissal Constructive dismissal Health issues Abandonment of employment On or after last day of employment Everyone Redundancy An employer must follow a fair and proper process before an employee is made redundant. Employee and employer responsibilities If you're an employee If you're an employer If you are being made redundant When an employee’s employment is terminated because their position has become surplus to the requirements of the business. Employers must follow a proper and fair process and consider redeployment options before making any positions redundant. , you must be given the correct notice by your employer. Before making an employee redundant, you must follow a fair and proper process. Your employer may agree to you not working the notice period. The reasons for any redundancy must be genuine. You’re only entitled to redundancy compensation if it’s stated in your employment agreement. Redundancy is a last resort. You must explore all redeployment options. Your final pay The last pay an employee receives from their employer. This includes their final salary or wages, all holiday pay they are entitled to, and any other payments owing. will include payment for unused holidays and any other entitlements. If you cannot offer the employee with suitable redeployment Moving employees with suitable transferable skills into other roles in an organisation to avoid redundancies. options, you must comply with all the requirements set out in the employment agreement A written document setting out the terms and conditions of employment agreed by the employer and employee (also known as a ‘contract of service’). It can include other contractual documents and agreements made by the employer and employee. Every employee must have a written employment agreement. . Redundancy An employer may need to reduce or change their workforce. In making an employee redundant, an employer must: follow a fair and proper process, including giving notice, if there are no other alternatives do all they can to find the employee an alternative role. Fair process Workplace change process An employer cannot make an employee redundant without first going through the proper workplace change Making changes that could affect employees’ jobs, for example, creating new roles, disestablishing existing roles, or changing employees’ duties. Also see ‘Restructuring’. process. The reasons for any redundancies When an employee’s employment is terminated because their position has become surplus to the requirements of the business. Employers must follow a proper and fair process and consider redeployment options before making any positions redundant. must be genuine. If an employee were to lose their job but then be replaced by someone in an identical role, this would very likely be considered an unjustified dismissal When an employee is terminated from their job unfairly or for reasons that the Employment Relations Authority or Employment Court deem to be unfair. . Personal grievances Restructuring and workplace change Notice must be given To end an employment relationship, notice must be given by either the employee or the employer. Redundancy as a last option Before making an employee redundant, an employer must have explored all possibilities to find them another position in the workplace. This is sometimes described as ‘ redeployment Moving employees with suitable transferable skills into other roles in an organisation to avoid redundancies. ’. Ending employment by way of redundancy, and a redundancy compensation payment (where this applies) must be considered a last option. If the employer is unable to find the employee an alternative role, they must provide them with all the support mentioned in their employment agreement, workplace policies or change proposal. This is the minimum – but they may wish to offer more support, such as: checking what date the role will be disestablished, and: if it will be needed for longer if there are other options for the employee to stay on while further redeployment options are considered outplacement support, including counselling, resume writing and interview training support, and career advice other training that could help improve the employee’s chances of future employment chances. The notice period: must be at least the length of notice referred in their employment agreement A written document setting out the terms and conditions of employment agreed by the employer and employee (also known as a ‘contract of service’). It can include other contractual documents and agreements made by the employer and employee. Every employee must have a written employment agreement. or workplace policies can be extended by agreement or if the employee agrees to continue in their role, or in a special project of some sort, while the workplace change is completed; this can allow for other redeployment opportunities to be explored. Employers exploring redundancy as an option can get support from the Ministry of Social Development. Redundancy support for employers - Work and Income (external link) Redundancy notice period Any employee who is being made redundant must be given notice and paid for the notice period unless both parties agree to waive the notice period The amount of time between giving notice and the date the employment relationship ends. . This is applicable in situations such as when an employee finds work and wishes to leave early. An employer can require the employee to work the notice period, but may agree not to. If there is no notice period specified in the employment agreement A written document setting out the terms and conditions of employment agreed by the employer and employee (also known as a ‘contract of service’). It can include other contractual documents and agreements made by the employer and employee. Every employee must have a written employment agreement. , ‘reasonable notice’ must be given. How much is ‘reasonable notice’ depends on a number of things, such as: the reason for the redundancy the employee’s length of service the employee’s seniority and/or remuneration package the employee’s ability to find alternative employment the amount of compensation being paid (if any) custom, practice and industry norms. Pay and hours An employee’s final pay In calculating an employee’s final pay, an employer must include: unused annual holidays Paid time away from work for rest and recreation. and salary An employee’s yearly pay, which is normally a fixed amount per year. any other entitlements. Final pay Redundancy compensation Whether an employee receives a redundancy payment depends on their applicable employment agreement and any negotiations they’ve had with their employer. If the employment agreement does not mention redundancy pay, then there would be no compensation. Get help If you think your rights are not being met in your workplace, you can report this to us using our Get Help form or by calling 0800 20 90 20. Your concerns will be handled in a safe environment. Get help form (external link) Published: 11 March 2024 Last modified: 26 November 2025 Written for: Everyone Share this page: Print this page: