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Redundancy rights in New Zealand

9 minute readStop 2: Told you’re redundant

In short

Your employer needs a genuine business reason and a fair process. You're owed your contractual notice and your final pay, including holiday pay. Redundancy compensation is only payable if it's in your agreement, a policy, or agreed with your employer. If something looks wrong you have 90 days to raise a personal grievance.

Tools for this guide

What redundancy is

Redundancy is when your role is no longer needed (it's 'disestablished'). It is about the role, not about you. It can't be used for performance or conduct concerns; those need their own processes.

The process your employer must follow

  1. Develop a proposal with genuine business reasons.
  2. Identify who may be affected.
  3. Share the proposal with affected employees (and their union).
  4. Give you reasonable time to consider and give feedback, and to get advice.
  5. Genuinely consider and respond to your feedback.
  6. Make and communicate the decision.
  7. Implement the change, including notice and support.

What you must be paid

ItemRule
NoticeThe notice period in your agreement, or a reasonable period if none is stated (it can be shortened or lengthened by agreement). It can be worked, or paid out if your agreement allows or you agree.
Final wagesAll hours worked to your last day.
Annual leaveAll unused entitled leave, plus 8% of gross earnings since your last anniversary date.
Public holidaysIf you have 12+ months' service and unused leave 'extends' your end date past a public holiday that would have been a working day, you're paid for it.
Redundancy compensationOnly if it's in your employment agreement, a workplace policy, or you've agreed it with your employer. There is no automatic statutory payout in NZ.

Use the Final Pay Calculator on this site for an estimate.

If you earn $200,000 or more

Dismissal protections changed on 21 February 2026. High-income employees (total remuneration of $200,000 or more a year) generally can't raise a personal grievance for unjustified dismissal, and employers don't need a genuine reason or full consultation, unless the employee and employer have agreed in writing to opt back in. Existing employees have a transition period until 21 February 2027. Employers must still act in good faith (not misleading or deceptive, and responsive and communicative) and give notice. Other grievances (e.g. discrimination, harassment) remain available. Employment NZ says employees dismissed before 21 February 2027 can still raise a grievance in some cases, so check employment.govt.nz and get advice before relying on either position.

If you're on a trial period

Employees on a valid trial period (up to 90 days, written into the agreement before work starts) generally can't raise a personal grievance for unjustified dismissal, and employers don't need a genuine business reason or workplace change process. You can still apply for Jobseeker Support if a trial period ends, and a shorter stand-down may apply.

If you think it wasn't fair

  • Raise a personal grievance in writing within 90 days (see next guide).
  • Ask for mediation (free, confidential, run by MBIE).
  • Get free advice from Community Law, CAB or a union.

Sources

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