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Redundancy

Redundancy is defined at common law as a situation where an employee's position becomes surplus to the needs of the employer. A redundancy is treated by the Courts as a dismissal, therefore it must be genuine and carried out in a procedurally fair way.

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Redundancy in New Zealand

Redundancy is a form of dismissal where the employer says your position is no longer needed. Even if the business decision is genuine, the employer must follow a fair process and the outcome must be one a fair and reasonable employer could have reached (section 103A - test of justification).

A "genuine redundancy" is not about whether you are a good employee - it is about whether the employer genuinely no longer needs the job to be done in the same way. If redundancy is used as a pretext to remove a person, it can be an unjustified dismissal.

What a fair redundancy process usually requires

  • Genuine business reason: There must be a real business rationale (for example, restructure, downturn, loss of contract, or efficiency change) and it must not be a disguise for performance or personal issues.
  • Early consultation: You should be told what is proposed, why it is proposed, and what roles may be impacted - before the decision is finalised.
  • Information disclosure: You should be given the key information the employer relies on (for example, proposed new structure charts, selection criteria, and the reasons certain roles are proposed to be removed), subject to legitimate confidentiality.
  • Real opportunity to comment: You must have a genuine chance to provide feedback, ask questions, propose alternatives, and suggest redeployment.
  • Fair selection process: If multiple people could be affected, selection criteria must be fair, relevant, and applied consistently (and employees should be consulted on the criteria).
  • Redeployment explored properly: The employer must genuinely consider suitable alternative roles, including training/upskilling where reasonable, before termination.
  • Written outcome: You should receive a clear written decision explaining the business rationale, the process followed, and why redeployment was or was not possible.

Common warning signs of an unfair redundancy

  • Predetermination: The decision feels "already made" before consultation, or your feedback is ignored.
  • Role not really gone: Your work is still being done (re-titled role, replacement hire, or the tasks are split to others) without a genuine restructure explanation.
  • Selection looks targeted: Criteria are vague, subjective, or appear designed to produce a particular outcome.
  • No real redeployment search: Vacancies exist but you are not considered, or you are told to apply like an external candidate without genuine consideration.
  • Confidentiality used as a shield: The employer refuses to provide the key information you need to comment meaningfully.

What to do if you are facing redundancy

  • Ask for the proposal in writing: including the new structure, the reason for change, and who is impacted.
  • Request the selection criteria: and any scoring or assessment used.
  • Put forward alternatives: reduced hours, temporary changes, job-share, redeployment, or different restructure options.
  • Ask about vacancies: and confirm you want to be considered for suitable roles.
  • Bring a support person: to any consultation or outcome meeting.

Time limits and evidence

  • 90 days: A Personal Grievance (PG) generally must be raised within 90 days of dismissal (or when it came to your notice).
  • Save everything: restructure proposals, org charts, meeting invites/notes, selection criteria, scoring, vacancy lists, emails, and letters.
  • Write a timeline: what was proposed, what you asked for, what you were told, and what options were (or weren't) offered.

Redundancy pay

There is no automatic statutory redundancy compensation. Entitlement usually depends on your employment agreement (or sometimes a workplace policy or established practice).

  • Check your employment agreement: does it specify redundancy compensation, notice, and consultation obligations?
  • Check policies/practice: some employers have policies or a history of paying redundancy compensation.
  • Final pay: you should still receive notice (or pay in lieu), holiday pay, and any other contractual entitlements.

If you are facing redundancy (or have already been made redundant), we can assess whether the redundancy was genuine and whether the employer followed a fair process under section 103A, and if not, raise a Personal Grievance (PG) and pursue appropriate remedies.
Employee Unfair Dismissal Case Form

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