Facing redundancy or a restructure at work?

What is redundancy?

Redundancy happens when an employer decides a role is no longer needed because of genuine business reasons. The issue should be the role becoming surplus to requirements, not dissatisfaction with the person doing the job.

Because redundancy ends employment, the employer should have a real business reason for the change and follow a fair process before making any final decision.

A genuine redundancy focuses on the future needs of the business. If the process is being used to remove a person for performance, personality, or relationship reasons, it may raise grounds for a personal grievance.

How redundancy works in New Zealand

In New Zealand, redundancy usually sits inside a wider workplace change or restructuring process. An employer should not move straight from proposal to termination without sharing relevant information, consulting, considering feedback, and checking redeployment options.

The process matters. A redundancy that looks valid on paper may still be challenged where consultation was rushed, the outcome was already decided, or the role was not truly disestablished.

What a fair redundancy process should look like

Genuine business reasons

There should be a real business basis for the proposed change, such as restructuring, financial pressure, a downturn in work, efficiency changes, or changed operational needs. Redundancy should not replace performance management, discipline, or conflict management.

Consultation before a final decision

Affected employees should be told what is proposed and why while the employer is still open to feedback. Consultation should be genuine, not a formality after the outcome has already been decided.

Access to relevant information

The employer should provide relevant information so the employee understands the case for change and has a fair chance to respond. Where selection is involved, this may include the proposed structure, role descriptions, selection criteria, and scoring.

A real opportunity to respond

You should have enough time to review the material, ask questions, seek advice, and provide feedback before the final decision. Your feedback should be genuinely considered.

Fair selection criteria

If more than one employee is affected, any selection process should use fair, objective, and transparent criteria. Vague, shifting, or unexplained scoring may be a warning sign.

Consideration of redeployment

Before ending employment, the employer should consider whether reasonable alternatives exist. This may include redeployment into another role, adjusted duties, changed hours, or other workable options inside the business.

Clear written outcome

If redundancy is confirmed, the final outcome should be set out clearly in writing. This usually includes the end date, notice period, final pay, and any redundancy compensation where it applies.

What to do if your role is at risk

If you are in a proposed restructure or redundancy process, early preparation helps protect your options.

1. Ask for the full proposal in writing, including the reasons for the change.
2. Request structure charts, role comparisons, and selection criteria being used.
3. Put forward alternatives, including redeployment or changes to duties.
4. Keep a written record of meetings, questions, and responses.
5. Take a support person or representative to formal meetings where possible.
6. Check your employment agreement for notice and any redundancy compensation clause.

Redundancy pay and final entitlements

There is no automatic legal entitlement to redundancy compensation in every New Zealand employment relationship. Whether you receive redundancy pay usually depends on your employment agreement, workplace policy, or an established workplace practice.

Check these items before accepting the final outcome:

• Your notice period.
• Final wages owing.
• Holiday pay and accrued entitlements.
• Any redundancy compensation clause.
• Support offered by the employer, such as paid notice, time to attend interviews, or a reference.

Time limits matter

If you believe a redundancy was not genuine or the process was unfair, there may be grounds to raise a personal grievance. In many cases, the usual time limit is 90 days, so getting advice early matters.

Workplace sexual harassment personal grievances have a 12-month timeframe. There are also special dismissal rules for employees earning $200,000 or more a year, unless dismissal protections have been opted back in. Timing and eligibility should be checked before any strategy is chosen.

What happens next

A redundancy dispute often starts with reviewing the proposal, consultation steps, selection process, redeployment options, and documents used by the employer.

Depending on where the matter sits, it may be possible to respond during the restructure, negotiate a better exit, raise a personal grievance after dismissal, or prepare for mediation.

How Employment Matters Sorted helps

Employment Matters Sorted reviews the process, identifies possible weaknesses, organises the evidence, and helps you understand your options before deadlines close in.

This may include reviewing proposals, checking consultation steps, assessing redeployment issues, preparing written responses, raising a personal grievance where appropriate, and working toward a practical resolution.