Am I entitled to redundancy pay in New Zealand?

General information from Lawmateanz

There's no automatic legal right to redundancy pay in New Zealand. You're only entitled to it if your individual or collective employment agreement provides for it, so check your agreement for a redundancy clause.

Even without redundancy pay, a redundancy must be genuine and handled fairly. That generally means a real business reason, consulting you before a final decision is made, giving you a chance to comment on the proposal, and considering alternatives such as another role.

You're entitled to the notice in your agreement, or reasonable notice if none is stated, plus your final pay, including any annual holidays you've earned but not taken.

If the redundancy wasn't genuine or the process was unfair, you may be able to raise a personal grievance for unjustified dismissal. This generally needs to be raised within 90 days.

Employment New Zealand has free information on redundancy, and its mediation service is free. A union or Community Law Centre can also help.

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