Redundancy is when an employer reduces their workforce because a position or positions are no longer needed. 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. Other guide categories View all categories. Northland Darrell Lambert Darrel.Lambert008. 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. In some countries, redundancy pay is mandatory. Redundancy. 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. If you have a workplace issue, you may want to use the Early Resolution Service to resolve it early, quickly and informally. 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. However, all employees whose employment is ending due to redundancy must be given notice in terms of the employment agreement. 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. 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. Firstly, we can act as the advocate for you, i.e. (2016) Redundancy. So when signing up to a new job, it pays to check your redundancy entitlements. An employer must follow a proper and fair process and all redeployment options exhausted before any positions are made redundant. you appoint us as your support person or representative and we solely represent your best interests with the issues that you have. Redundancy arises where the role becomes superfluous to the requirements of a business. If there is no mention of the amount it could be up for negotiation. 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. Our services are available in English and Chinese/Mandarin. @msd.govt.nz. 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. Check with IR what tax you should have paid — you may have paid too much tax or not enough. Redundancy Payments. Please note that this content will change over time and may be out of date. Our employment law services. 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. 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. Employment Advocates are experts in resolving conflicts and disputes at work. Understand various employment issues with these self-help articles explained in a plain English HowTo.. format. Redundancy. redundancy support and will put you in touch with someone in your area. Even if it does, the provisions in your employment contract may be contrary to New Zealand employment law. Annual Leave and Other Leave. Bay of Plenty Brent MacDonald . Describes redundancy payments and how statutory redundancy is calculated. There are various ways to determine if you have been replaced after your employment has finished. It’s important for employers to use good hiring processes, and for everyone to follow minimum rights and responsibilities. Employment Law Brochure; Employee Disciplinary Meeting. But under New Zealand law, there is no basic right to redundancy pay. Under New Zealand law it is not compulsory for an Employer to pay redundancy compensation. Your employer must treat you fairly, pay you at least the minimum wage set by the government, and meet their other employment law obligations. 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. Check Your Employment Agreement: If your employment agreement mentions redundancy compensation, it will probably also show what the amount of compensation will be. The process of redundancy, and payment of redundancy compensation (where this applies), are a last option. Redundancy. 90 Day Trial Periods; Employee Disciplinary Meeting; employment unfair dismissal; Employment Restraint of Trade; Employment … NZ Employment documents & articles. 6th March 2018. Keep an eye on job advertisements to see if you can find your job listed in the situations vacant. An employer can require an employee to work out their notice. Join our subscribers to receive the latest Employment New Zealand newsletter. A job may not work out as either party intended or hoped for at the start. We believe that everyone should have access to quality employment law … Starting a new job is an exciting and challenging time. We are facing unprecedented times with the Covid-19 pandemic and it If your employer chooses to end your employment through dismissal, restructure or redundancy, they need to follow a formal process. 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. Redundancy and restructuring. 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. Have they made any major purchases lately? Redundancy is a form of dismissal from your job. nzherald.co.nz. 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. tel: 0800 088 4022. 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. ... and redundancy should only be considered if no suitable alternative arrangements have been found. Employment Law Brochure; Employee Disciplinary Meeting. 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”. 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 … Redundancy? At a minimum, your employer must give you the same amount of notice, or greater, than the termination notice period in your contract. Redundancy is often confused as an easy way to remove an employee. What we consider good faith is calling a formal meeting with you. We specialise in employment law and represent employees and employers with a pragmatic focus on resolving employment relationship issues. check_list; redundancy; Employment Agreement Review; Employers. That means unless your employment agreement provides for redundancy pay, you don’t get any. Redundancy is when an employer reduces their workforce because a position or positions are no longer needed. 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. You must enable JavaScript to submit this form. 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. Under New Zealand law it is not compulsory for an Employer to pay redundancy compensation. Amendments to the Act now state more clearly the minimum requirements for employers proposing to make a decision that will affect their employee… Has the owner been on a big holiday recently? Lu v Institute of Commercial Education (NZ) Ltd 12 February 2008 AA 40/08 Quick Contact Free Case Review. Redundancy law NZ states that employment agreements cease to continue with the sale. It happens when employers need to reduce their workforce. Employment Agreements . An employer may end their employee's employment via a 'dismissal' eg for misconduct or redundancy, but a proper process must always be followed. Get in Touch. The notice period must be at least the length of notice referred to in the employment agreement or workplace policies. Some employers use the redundancy caper to get rid of staff they don't want, without legitimate grounds. If your contract does not cover redundancies, then you are not entitled to a redundancy payment. People Management (online). Receive news and updates each month from Employment New Zealand. Are there any other options for the employee to stay on longer while further redeployment options are considered? We can represent employees/individuals or employers. 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. 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