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Banking, finance, professional services, engineering, science and call centres: redundancy and next steps

8 minute readBy industry & region

In short

White-collar roles are affected by restructures, offshoring and automation. The law is the same as for other workers: genuine reason, consultation, fair selection, notice. What differs is what is on offer: bank and corporate agreements often include enhanced redundancy and outplacement, professional services firms often use performance language, and offshoring of call centres can trigger the question of whether the role is truly redundant. Ask for the proposal in writing, check what you are owed, and use your network.

The common patterns

SectorCommon patternWhat to look for
Banking and insuranceBranch closures, digital shift, central roles merged, repeated 'transformation' rounds.Collective agreement (for example with FIRST Union in banking) with redundancy formulas and redeployment obligations. Ask about outplacement.
Professional services (law, accounting, consulting)Cutbacks when work slows, partners shrinking teams, 'performance' reasons used instead of redundancy.Whether the stated reason is really redundancy or a disguised performance exit. Get advice on settlement terms.
Engineering and construction designProject pipelines dry up when infrastructure or housing work slows.Registration (CPEng) and professional-body job boards. Consider infrastructure, energy and utilities.
Science and Crown Research InstitutesFunding changes and restructures of science agencies and universities.Collective agreements and union contacts; Scion proposed cutting about 30 jobs (roughly 10 percent of its workforce) in May 2024, per Carbon News. Ask your own CRI for its current position.
Call centres and customer serviceWork moved offshore or automated; sites closed.Whether jobs are truly gone, redeployment to other teams, and your right to consultation.

If your job is offshored or automated

Moving a role overseas, or replacing it with software, can still be a genuine redundancy, as long as the employer follows a fair process. The employer must consult on the proposal and genuinely consider alternatives, such as redeployment, retraining and reduced hours.

  1. Ask for the business case and what alternatives were considered.
  2. Ask about timeline and knowledge transfer expectations. Being asked to train your replacement is common, and you can ask for a retention or completion payment in return.
  3. Check your agreement for redundancy pay and notice. Ask in writing if any extra payment is possible for staying until the handover.
  4. Ask about references, a transition period and paid time off for job interviews.

Asking for a completion payment

Hi [Manager], Thank you for explaining the proposal. If I am to remain until [date] to complete handover to [team/provider], I would like to discuss a completion payment of [X weeks' pay], payable on that date in addition to my entitlements, and agreement on paid time for interviews and a reference. Could we agree this in writing before the consultation period ends? Kind regards, [Name]

Settlement agreements and 'mutual exit' offers

Professional workplaces sometimes present a package and ask you to sign quickly. Do not sign without advice if you are unsure. A settlement agreement should be in writing, can be made binding through Employment NZ's mediation service, and usually requires you to give up the right to raise a grievance.

  • Ask for time and for the employer to contribute to legal costs.
  • Check confidentiality, non-disparagement and restraint of trade clauses.
  • Check how the payment will be taxed, and the effect on any benefit stand-down.
  • Agree what the employer will say in a reference.

Sources

General information only. Confirm with the agency for your situation. Spotted something out of date? Email help@unemployed.nz.

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