Fill in the [brackets]
Subject: Redundancy compensation - [Your name], [Role]
Hi [Name], Following the confirmation that my role will be disestablished, I would like to understand what financial support will be provided. 1. Clause [number] of my employment agreement says [quote or summarise, e.g. 'redundancy compensation of 4 weeks per year of service' / 'there is no redundancy clause']. 2. [If there is a clause: please provide a written calculation based on my start date of [date], my ordinary weekly pay of $[amount], and any [bonus / allowance] that counts.] 3. [If there is no clause: I am asking the company to consider paying redundancy compensation of [amount / X weeks] in recognition of [X years] of service, the circumstances of this change and the notice period available.] 4. Please confirm in writing: my last day, notice pay or payment in lieu, outstanding annual leave, and any other amounts payable, and the date they will be paid. I would appreciate your response by [date]. Kind regards, [Your name]
Tips
- There is no automatic right to redundancy compensation in NZ. You only get it if it is in your employment agreement or a workplace policy, or if you agree it with your employer. Always check your agreement first, including any collective agreement.
- Where there is no clause, it is a negotiation. Mention your years of service, the notice available and any difficulty finding similar work. Long-service employees and small, profitable employers sometimes agree to something.
- Check whether compensation is paid before tax and how it affects Work and Income: redundancy pay can lead to a stand-down of 1 or 2 weeks, depending on the amount. Use the stand-down tool on this site.
- Never sign a settlement agreement the same day. See the settlement counter-offer template.
- Keep a copy of everything you send (sent-email folder, a screenshot or a photocopy) and save replies in one folder named with the date.
General information, not legal advice. Keep a copy of everything you send. Spotted something out of date? Email help@unemployed.nz.