Notice of termination of employment must be given in accordance with the employee’s agreement. Our services are available in English and Chinese/Mandarin. Are there any other options for the employee to stay on longer while further redeployment options are considered? Redundancy is when an employer reduces their workforce because a position or positions are no longer needed. Receive news and updates each month from Employment New Zealand. Redundancy. Please note that this content will change over time and may be out of date. Under New Zealand law it is not compulsory for an Employer to pay redundancy compensation. Flo.Samuels005@msd.govt.nz. Employers need to prove that they acted in a fair and legal way or face legal consequences. tracy@cwlaw.nz. Employment Law and Redundancy Compensation Have they made any major purchases lately? Does your situation reflect what your contract says? Redundancy is when an employer reduces their workforce because a position or positions are no longer needed. 3022. Read the latest on redundancy during Covid-19. Search. People Management (online). Under New Zealand employment law, employers and employees both have rights and responsibilities. Things can change in an employment situation for either party. (2017) Choosing the right … If you are an employer and you wish to make an employee redundant, you must ensure: that there are genuine commercial reasons for doing this (that is, that the redundancy is substantively justified) that the process by which this is done is fair (procedural fairness), and that you comply with any relevant terms in the employment agreement Redundancy Payments. There are various ways to determine if you have been replaced after your employment has finished. Redundancies are treated as dismissals. This section provides help in some key areas. Employment Lawyers and Employment Advocates provide the same services. NZ Employment documents & articles. If the employee is one of two or more staff who occupy the same type of role, and not all of those roles are being made redundant, you will need to select which of those staff is going to lose their jobs and which will be able to slot into one of the remaining positions. Check Your Employment Agreement: If your employment agreement mentions redundancy compensation, it will probably also show what the amount of compensation will be. Consider whether you want the employee to work the notice or be paid their notice. Employment agreements that contain redundancy clauses usually include a caveat: that employees will not be entitled to compensation when electing to not continue on with the new owner. It was considered a management prerogative to structure the business as an employer saw fit. Our employment law services. Employee bound by applicable collective agreement may agree to additional terms and conditions of employment: 62: Terms and conditions for first 30 days of employment of new employee who is not member of union : 62A: Employer must share new employee information with union unless employee objects: 63: Terms and conditions of employment of employee who is not member of union after … Jobs for life are a thing of the past, but when you're made redundant, it can be awful. check_list; redundancy; Employment Agreement Review; Employers. If you have a workplace issue, you may want to use the Early Resolution Service to resolve it early, quickly and informally. Waikato Tuahu Watene . Whether employees receive redundancy payments is dependent on the applicable employment agreements and is a matter for negotiation between the parties. how to fire an employee; Employment Restructuring and Redundancy; Employers Guide to Disciplinary Meetings ; Employment Agreement New Zealand; FAQ. Employees become entitled to annual holidays, public holidays, sick leave, bereavement leave, parental leave and other types of leave as long as they meet certain conditions. What are the rules on qualifying for a redundancy payment. counselling support where outplacement is not made available or outplacement does not include counselling, other training that may improve the employee's chances of future employment, the employee’s seniority and/or remuneration package, the employee’s ability to find alternative employment. Contact us today by leaving your details on the online form. Job Hunting Making a change Working life Making a change Job loss Job loss 3 min read Rights for redundancy. However, all employees whose employment is ending due to redundancy must be given notice in terms of the employment agreement. Wednesday, 20 January 2021 . tel: 0800 088 4022. 297, Regulation on severance pay and rules governing pensions; Law of 23 August 2004, n. 243 Pension regulations and government mandates in the public pension sector, to support supplementary pensions and stable employment and for the reorganisation of social security and mandatory assistance; Law … So when signing up to a new job, it pays to check your redundancy entitlements. The process of redundancy, and payment of redundancy compensation (where this applies), are a last option. 0. We think that employment law exists in a large part because employment involves people, and wherever there are people there are different perspectives and points of view, personal values, expectations, and goals. Check Your Employment Agreement: If your employment agreement mentions redundancy compensation, it will probably also show what the amount of compensation will be. There are several ways in which employment relationships may be ended, such as resignation, retirement, dismissal or redundancy. London: Labour Research Department. checking what date the job is to be disestablished. The length of ‘reasonable notice’ depends on a variety of factors, such as: Remember that unused annual leave and salary, along with any other entitlements, up to the end date is payable. Search. Redundancy Law. Is the employee agreeable to continue working for a while and take redundancy later? Help yourself to a range of New Zealand Employment agreements including and Consultancy agreements, Employee Warning Letters, Termination and Redundancy agreements. The workplace change process gives an outline of the process an employer should follow when working through a change. It is important to remember that it is the position that is surplus, not the employee. 2nd ed. If there is no mention of the amount it could be up for negotiation. NZ Herald. In all circumstances you should call us first Robert Thompson is Christchurch’s leading employment law advocate. Redundancy focuses on the role itself and not the individual. Should the Employment Relations Authority find that your restructure or redundancy was not for genuine reasons, then you are likely to face an award in favour of your employee for three months pay, compensation of approximately $5,000, plus a contribution to the employee's representation costs of $3,500. Learn more about Redundancy and NZ Employment Law. Law 29 May 1982, no. New Zealand Employment Law Specialists. If your contract does not cover redundancies, then you are not entitled to a redundancy payment. Some employers use the redundancy caper to get rid of staff they don't want, without legitimate grounds. Section 4 of the Employment Relations Act 2000 requires employers to act in good faith when making employees redundant. Employment Law Brochure; Employee Disciplinary Meeting. Settlement Agreements. If you need employment law advice, we can help. Because it’s the position that is no longer needed (not the employee), the redundancy is very likely to be unjustifiable if an employee loses their position and … We also represent clients in disputes resolution and litigation matters, including Review and Authority Hearings, District Court and High Court proceedings. Because it’s the position that is no longer needed (not the employee), the redundancy is very likely to be unjustifiable if an employee loses their position and then is replaced by someone else in the same position. Terminating employment agreements during COVID-19 response and recovery There are good faith processes to follow for workplace change, and redundancy should only be considered if no suitable alternative arrangements have been found. It happens. A discussion at the meeting would include input and feedback from you to the employer over the issues of redundancy. The employer has an obligation to act in good faith. is mediation really a confidential process, how is mediation different to arbitration, Nicol v Canterbury Concrete Cutting NZ Limited. If it doesn't, then you may have cause for a personal grievance. Employment law handbook. If your employer chooses to end your employment through dismissal, restructure or redundancy, they need to follow a formal process. But under New Zealand law, there is no basic right to redundancy pay. They must also make sure your workplace is safe. Your employer should take the tax from your redundancy payment and pay it to IR for you. Firstly, we can act as the advocate for you, i.e. Any feedback the employee gives regarding how the redundancy may be avoided should be carefully considered by the employer before a final decision is made. The employee does not have to agree to a later date. The saving grace is that you can not contract out of law or, in other words, a clause that goes against New Zealand employment law is not enforceable in an employment contract. (2016) Redundancy. Starting a new job is an exciting and challenging time. If you do, then the first step is to raise a personal grievance for an unjust termination. 90 Day Trial Periods; Employee Disciplinary Meeting; employment unfair dismissal; Employment Restraint of Trade; Employment … NZ Herald Home ... employers should ensure they are compliant with New Zealand's employment law with regards to redundancy… Employment Law Advocacy - Employment Law matters with resolution focused solutions. Is the business really struggling? Employers should take care to document all decisions and reasoning about any change that might result in an employee’s job being significantly changed, or an employee being made redundant. Redundancy Read more. London: Thomson Reuters. Sometimes employers use redundancy as a way to get rid of an employee who they no longer want for various other non genuine reasons. - Nationwide employee advocacy for all employment issues - We cover all costs for grievance cases. Other guide categories View all categories. Call us first for your free consultation. You should be invited to at least 1 individual meeting with your employer to discuss redundancy. A job may not work out as either party intended or hoped for at the start. Employment Minefield for Employers. New Zealand Employment Law Specialists. All about pay, hours at work, record keeping and what breaks employees are entitled to. An Employer needs to be able to justify the redundancy, and follow fair procedure throughout the process. you appoint us as your support person or representative and we solely represent your best interests with the issues that you have. News and updates ... to pay $90,000 in penalties for breaching employment laws. What we consider good faith is calling a formal meeting with you. Minimum wage | Employment New Zealand In a nutshell, the term “redundancy”, in the context of employment law, refers to a scenario wherein an employer reduces their workforce in the event that a certain job/jobs are no longer needed, i.e., they become “redundant”. Go. An employer may end their employee's employment via a 'dismissal' eg for misconduct or redundancy, but a proper process must always be followed. If there is no specific clause in an employment agreement giving a period of notice in a redundancy situation, ‘reasonable notice’ must be given. Primarily, take a look at your employment contract and what it says on redundancy. Please don't hesitate to contact us on 0800 746 225 or email us to discuss the particulars of your situation. Qualifying for redundancy. Northland Darrell Lambert Darrel.Lambert008. Subscribe. The notice period must be at least the length of notice referred to in the employment agreement or workplace policies. That means unless your employment agreement provides for redundancy pay, you don’t get any. If you lose your job you may be eligible for redundancy. 20 August. That means unless your employment agreement provides for redundancy pay, you don’t get any. I asked employment lawyer Priya Magar at law firm EMW a few commonly asked questions around the redundancy process. Redundancy arises where the role becomes superfluous to the requirements of a business. Redundancy Process NZ. A notice period is the amount of time between when your employer tells you that you will be made redundant and your last working day. Request a call back. But under New Zealand law, there is no basic right to redundancy pay. If your contract does not cover redundancies, then you are not entitled to a redundancy payment. If they do not follow it properly you could be entitled to compensation. An employer must follow a proper and fair process and all redeployment options exhausted before any positions are made redundant. In fact, employers can require a redundant employee to work the notice period. When an employer advises an employee that they have not been successful in the redeployment process they should make sure that the employee is offered at least all of the support that is mentioned in the employment agreement or policies and/or has been mentioned in the change proposal. Many Kiwis will experience redundancy at some point in their working lives. The best way to prevent and resolve relationship problems between employers and employees. Employment Law Brochure; Employee Disciplinary Meeting. This can allow for other redeployment opportunities to be explored. Has the owner been on a big holiday recently? EmploymentSolicitor.com All about employment law. Get in Touch. Redundancy payments. Free Employment Law NZ Advice. Amendments to the Act now state more clearly the minimum requirements for employers proposing to make a decision that will affect their employee… Employers are also under an obligation to act good faith at all … redundancy support and will put you in touch with someone in your area. The entitlement to redundancy compensation is strictly contractual, meaning that if your employment agreement does not expressly provide for it, there is no obligation to pay. An employee’s job is redundant if the business or organisation that employs them closes down, or closes down at the location where they work, or if they become surplus to the requirements of the business or organisation. Check with IR what tax you should have paid — you may have paid too much tax or not enough. If the employee agrees you may give an extended notice period while they continue in their role, or in a special project of some sort, while the change implementation is completed (or as agreed). It is important to remember that it is the position that is surplus, not the employee. if his dismissal is the result wholly or mainly of the cessation of the employer's business or to the cessation or diminution of demands for particular work. You must enable JavaScript to submit this form. Under New Zealand employment law, employers and employees both have rights and responsibilities. Even if it does, the provisions in your employment contract may be contrary to New Zealand employment law. We can act in one of two capacities for employment law situations or disputes in the workplace. CALL US FROM ANYWHERE IN NZ It's not that simple. In this common scenario, employees find themselves technically redundant. Under New Zealand law it is not compulsory for an Employer to pay redundancy compensation. While most employees will face restructuring and redundancy during their working life, they often feel that the decision is personal and has little to do with genuine commercial needs and the law. A woman has been awarded nearly $40,000 after the Employment Relations Authority (ERA) ruled her redundancy was unfair. Bay of Plenty Brent MacDonald . Make sure you check your contract of employment, as it might state that you’re entitled to longer notice periods. In some countries, redundancy pay is mandatory. Employment Advocates are experts in resolving conflicts and disputes at work. Employment law situations can get highly emotive as we are dealing with people's livelihoods. Employment Law Collective Employment Agreements Individual Employment Agreements Personal Grievances Disciplinary Hearings Termination Redundancies Restructurings Covid-19 Employment advice If you are an employer or an employee and need advice on any employment matters, please call us. Employee Redundancy Complaints. We specialise in employment law and represent employees and employers with a pragmatic focus on resolving employment relationship issues. 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In Italy, there is no severance pay or redundancy compensation as such. Redundancy is a situation where an employer terminates an employee due to the fact that the position filled by that employee is no longer required to the needs of the employer. Keep an eye on job advertisements to see if you can find your job listed in the situations vacant. Constructive Dismissal. Redundancy . Unless the employee could show that the redundancy was a sham, motivated by a desire to exit an employee for reasons other than redundancy (for example, poor performance), the Courts tended not to interfere. Your employer must treat you fairly, pay you at least the minimum wage set by the government, and meet their other employment law obligations. Still haven't found what you're looking for? Understand various employment issues with these self-help articles explained in a plain English HowTo.. format. Don't forget that our initial consultation with you is free. Redundancy is generally considered to be a situation where an employee’s position is surplus to the employer’s commercial needs. It happens when employers need to reduce their workforce. In general, an employer is entitled to make you redundant if this is for genuine business reasons, and is not required to pay you compensation unless there is a specific agreement with you to do this. claims in the Employment Relations Authority and Employment Court; As employment law in NZ is rather process driven, and there are fairly strict time limits that can apply, it is vital to get early expert advice to ensure the best outcome. Redundancy. Employers cannot make someone redundant without going through the workplace change process first. OWEN, N. and PECK, S. (2013) Redundancy law : a guide to using the law for union reps. LRD Booklets. Covid-19 is not a reason to make a position redundant. If you are unhappy at work, we can help. A redundancy is when an employer dismisses an employee on the ground that the employee's position is being discontinued for business reasons. A redundancy payment is taxable income. If you choose to be made redundant, then … 6th March 2018. Annual Leave and Other Leave. NZ; Career Advice. This can include the possibility of being utilised elsewhere in the company, along with any other suggestions anyone may have as to how the issue of redundancy could be mitigated or if there are alternative solutions to the problem that has caused the redundancy situation. If your redundancy process was not similar to what I have just described, then possibly the employer may not have acted in good faith and you may be able to make a personal grievance claim against them. Our services are available in English and Chinese/Mandarin. No two redundancy situations are the exactly the same. If a “redundant” person is replaced by someone else in the same position, the redundancy is very unlikely to be justifiable. Are you the only one going through the alleged redundancy process? CHURCHILL, F. (2020) Is any sector safe from Covid-related redundancies? We can represent employees/individuals or employers. Fill out the form below and we’ll be in touch as soon as possible. check_list; redundancy; Employment Agreement Review; Employers. Redundancy Payments. Your employer has to follow a fair redundancy process if you’ll have worked for them for at least 2 years by the time your job ends. Redundancy is often confused as an easy way to remove an employee. The topic of redundancy needs to be stated in the written notice. At Work Fair, we provide legal services for employment matters within New Zealand. We assist employees, employers and employment lawyers with dedicated pages of information for Employees and Employers.Our first consultation is free, so you can call us for a chat on our free 0800 number, 0800 HELP ME (0800 435 763) or email danny.gelb@employmentlaw.net.nz about your situation without … nzherald.co.nz. It still amazes me what some employers put in their employment contracts. Employment Agreements . In a nutshell, the term “redundancy”, in the context of employment law, refers to a scenario wherein an employer reduces their workforce in the event that a certain job/jobs are no longer needed, i.e., they become “redundant”. Redundancy and fairness. Redundancy is generally considered to be a situation where an employee’s position is surplus to the employer’s commercial needs. An overview of redundancy, with links to more detailed information. An employer must follow a fair process whenever they want to make an employee redundant. how to fire an employee; Employment Restructuring and Redundancy; Employers Guide to Disciplinary Meetings; Employment Agreement New Zealand; FAQ. a combination of these things. We are facing unprecedented times with the Covid-19 pandemic and it This would be by way of written notice, giving you at least 24 hours and advising you that you can bring along a support person. It came into force on 28 June 2020. Redundancy law NZ states that employment agreements cease to continue with the sale. Redundancy? The saving grace is that you can not contract out of law or, in other words, a clause that goes against New Zealand employment law is not enforceable in an employment contract. The process of redundancy is clear and the reasons for redundancy must be genuine and should be considered a final option if all else has failed. New Zealand employment laws stipulate that staff must be consulted on every aspect of a redundancy or restructure before the final decision to either make someone redundant or to disestablish their role. Lu v Institute of Commercial Education (NZ) Ltd 12 February 2008 AA 40/08 ... and redundancy should only be considered if no suitable alternative arrangements have been found. Whether or not an employee is entitled to a redundancy payment does not impact the notice period outlined in the employment agreement. Transitioning out of employment can be difficult and with so many factors at play in redundancies, it can be confusing. 2010 – Employment Court: Yes, the employer must offer redeployment In Jinkinson v Oceana Gold (NZ) Ltd (“Jinkinson”), the Employment Court deftly distinguished and declined to follow the Court of Appeal’s approach in Thwaites (by finding that, with the passage of the Employment Relations Act 2000, the law had changed since Thwaites). In some countries, redundancy pay is mandatory. There are a couple of aspects to being made redundant that you can look at. Brent.MacDonald001@msd.govt.nz. Under current employment law, if your employment agreement says nothing about redundancy compensation or says you are not entitled to it, then you generally are not entitled to any. Employment Advocates are experts in resolving conflicts and disputes at work. These situations are generally not too hard to spot. Auckland Flo Samuels . Quick Contact Free Case Review. Articles. Redundancy. Redundancy, Restructuring, Strike and Lockout Advice Call for a free 15 minute phone consultation. Redundancy While most employees will face restructuring and redundancy during their working life, they often feel that the decision is personal and has little to do with genuine commercial needs and the law. The law requires that a restructuring clause be put into all employment agreements. I leave that up to your imagination. Redundancy and Restructuring; Harassment and Workplace Bullying ; Negotiations ; Wrongful Dismissal; If you need to hire a lawyer in Dunedin to represent you in any employment matter such as an unfair dismissal, wrongful dismissal or employment disputes, Jenny Beck Law is the firm who can give solid employment law advice. If you’ve been made redundant because of coronavirus (COVID-19), your employer might be able to re-employ you and pay 80% of your wages. An employer can require an employee to work out their notice. Employment Relations (Triangular Employment) Amendment Act 2019 This law change addresses a gap in legislation in relation to employees in triangular employment situations (eg labour-for-hire). During the restructuring consultation, your employer may ask employees whether any of them wishes to be made redundant when the workplace is restructured. Journal articles. Employment Relations Amendment Act 2018 In the employment law of the UK, certain rights accrue to someone who is made redundant, i.e. Recheck this with the employee also. The reasons for the redundancy must be genuine. Redundancy and restructuring. It also requires an employer who is proposing to mak… At a minimum, your employer must give you the same amount of notice, or greater, than the termination notice period in your contract. Read More. Employment Court decisions signal new path in restructuring and redundancy Company decisions to restructure, with resulting redundancies, are coming under increased focus from the Employment Court. We believe that everyone should have access to quality employment law … Covid 19 and Redundancy. An employer may need … COY, J. We can represent employees/individuals or employers. Therefore how a redundancy is managed is subject to the statutory Test of Justification, what a fair and reasonable employer could have done in the circumstances. The employee must be given a genuine opportunity to comment on the possibility of redundancy. According to redundancy law, you’re entitled to a minimum notice period of: 12 weeks’ notice if employed for 12 years or more. Editor. Once we have had a look at your situation we can advise if you have a valid case or not. The law sets out various entitlements for employees following redundancy. If there is no mention of the amount it could be up for negotiation. Guides in this category View all. The employer would then close the meeting and deliberate over what was said and then deliver his/her decision at a later date. Principles developed by the Employment Court and Employment Relations Authority include: There must be a genuine redundancy situation … The employer has to get it right, so if you have been fired or forced to quit, we can help. At Work Fair, we provide legal services for employment matters within New Zealand. the amount of compensation being paid (if any). Will it be needed for longer? We are NZ's №1 No Win No Fee Employment Advocates. Redundancy is a form of dismissal from your job. Speak to a solicitor for a free initial confidential chat . Describes redundancy payments and how statutory redundancy is calculated. Tuahu.Watene003@msd.govt.nz. 0800 088 4022. So when signing up to a new job, it pays to check your redundancy entitlements. Happen after all redeployment options have been exhausted not an employee is entitled to a New is. If it does, the provisions in your employment agreement Review ; employers Guide to Disciplinary Meetings ; Restructuring... Whose employment is ending due to redundancy pay represent your best interests the. In accordance with the issues that you can find your job you may want to use good processes... Then the first step is to be explored two capacities for employment matters within New newsletter. Employment laws redeployment opportunities to be stated in the written notice employment Restraint of ;. 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