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Redundancy

Redundancy is the ending of employment because an employer no longer needs a role or needs fewer people doing that work.

It can follow a closure, restructuring or change in how work is organised. The process and any payments depend on the jurisdiction and employment terms. Ask for the employer's explanation, the proposed timetable and information about alternative roles. Keep copies of the proposal, correspondence and contract so you can understand what has been decided and what is still open for discussion.

In New Zealand, Employment New Zealand says the reasons must be genuine, employers must follow a fair process and explore redeployment, and redundancy compensation depends on the employment agreement or negotiations. A separate redundancy payment is not automatic there. Notice pay and other final-pay entitlements need their own calculation. In Great Britain, eligible employees can receive statutory redundancy pay. Use the rules for your own employment rather than importing another country's formula.

Example

An employer proposes closing one office. An affected employee asks about vacancies elsewhere, the consultation timetable, notice and the separate components of any final payment.

What to check

  • Read the proposal and response deadline.
  • Ask about alternative roles and selection criteria.
  • Separate notice, leave and redundancy payments.

Sources

All employment terms