The law requires that a restructuring clause be put into all employment agreements. 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. 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. Employment Relations Amendment Act 2018 Under New Zealand employment law, employers and employees both have rights and responsibilities. Quick Contact Free Case Review. Make sure you check your contract of employment, as it might state that you’re entitled to longer notice periods. 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. If a “redundant” person is replaced by someone else in the same position, the redundancy is very unlikely to be justifiable. Redundancy Payments. 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. 3022. a combination of these things. Whether or not an employee is entitled to a redundancy payment does not impact the notice period outlined in the employment agreement. The employee does not have to agree to a later date. Bay of Plenty Brent MacDonald . Please don't hesitate to contact us on 0800 746 225 or email us to discuss the particulars of your situation. 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. 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 … Primarily, take a look at your employment contract and what it says on redundancy. Employment Advocates are experts in resolving conflicts and disputes at work. Law 29 May 1982, no. But under New Zealand law, there is no basic right to redundancy pay. Redundancy payments. Speak to a solicitor for a free initial confidential chat . It is important to remember that it is the position that is surplus, not the employee. Even if it does, the provisions in your employment contract may be contrary to New Zealand employment law. Some employers use the redundancy caper to get rid of staff they don't want, without legitimate grounds. Your employer should take the tax from your redundancy payment and pay it to IR for you. I asked employment lawyer Priya Magar at law firm EMW a few commonly asked questions around the redundancy process. Under New Zealand law it is not compulsory for an Employer to pay redundancy compensation. Redundancy is generally considered to be a situation where an employee’s position is surplus to the employer’s commercial needs. Redundancy focuses on the role itself and not the individual. Still haven't found what you're looking for? Redundancy. The employer would then close the meeting and deliberate over what was said and then deliver his/her decision at a later date. New Zealand Employment Law Specialists. In the employment law of the UK, certain rights accrue to someone who is made redundant, i.e. Qualifying for redundancy. how to fire an employee; Employment Restructuring and Redundancy; Employers Guide to Disciplinary Meetings ; Employment Agreement New Zealand; FAQ. Redundancy is when an employer reduces their workforce because a position or positions are no longer needed. London: Thomson Reuters. If there is no mention of the amount it could be up for negotiation. CALL US FROM ANYWHERE IN NZ It's not that simple. Employment Law Brochure; Employee Disciplinary Meeting. Check with IR what tax you should have paid — you may have paid too much tax or not enough. If your employer chooses to end your employment through dismissal, restructure or redundancy, they need to follow a formal process. If you do, then the first step is to raise a personal grievance for an unjust termination. The topic of redundancy needs to be stated in the written notice. Once we have had a look at your situation we can advise if you have a valid case or not. The employer has to get it right, so if you have been fired or forced to quit, we can help. 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. Many Kiwis will experience redundancy at some point in their working lives. The process of redundancy, and payment of redundancy compensation (where this applies), are a last option. NZ; Career Advice. A woman has been awarded nearly $40,000 after the Employment Relations Authority (ERA) ruled her redundancy was unfair. Clients in disputes resolution and litigation matters, including Review and Authority Hearings, District Court High... 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