All about pay, hours at work, record keeping and what breaks employees are entitled to. Covid-19 is not a reason to make a position redundant. Your employer must treat you fairly, pay you at least the minimum wage set by the government, and meet their other employment law obligations. Employment Law Brochure; Employee Disciplinary Meeting. At Work Fair, we provide legal services for employment matters within New Zealand. What we consider good faith is calling a formal meeting with you. 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. a combination of these things. Under New Zealand law it is not compulsory for an Employer to pay redundancy compensation. London: Thomson Reuters. Employment agreements that contain redundancy clauses usually include a caveat: that employees will not be entitled to compensation when electing to not continue on with the new owner. If you need employment law advice, we can help. Lu v Institute of Commercial Education (NZ) Ltd 12 February 2008 AA 40/08 Your employer should take the tax from your redundancy payment and pay it to IR for you. The saving grace is that you can not contract out of law or, in other words, a clause that goes against New Zealand employment law is not enforceable in an employment contract. (2017) Choosing the right … Northland Darrell Lambert Darrel.Lambert008. In fact, employers can require a redundant employee to work the notice period. Annual Leave and Other Leave. CALL US FROM ANYWHERE IN NZ It's not that simple. But under New Zealand law, there is no basic right to redundancy pay. The process of redundancy, and payment of redundancy compensation (where this applies), are a last option. how to fire an employee; Employment Restructuring and Redundancy; Employers Guide to Disciplinary Meetings ; Employment Agreement New Zealand; FAQ. Should the Employment Relations Authority find that your restructure or redundancy was not for genuine reasons, then you are likely to face an award in favour of your employee for three months pay, compensation of approximately $5,000, plus a contribution to the employee's representation costs of $3,500. Employment Relations (Triangular Employment) Amendment Act 2019 This law change addresses a gap in legislation in relation to employees in triangular employment situations (eg labour-for-hire). Is the employee agreeable to continue working for a while and take redundancy later? check_list; redundancy; Employment Agreement Review; Employers. If it doesn't, then you may have cause for a personal grievance. Speak to a solicitor for a free initial confidential chat . Redundancy and restructuring. Are you the only one going through the alleged redundancy process? This can allow for other redeployment opportunities to be explored. However, all employees whose employment is ending due to redundancy must be given notice in terms of the employment agreement. If you lose your job you may be eligible for redundancy. The entitlement to redundancy compensation is strictly contractual, meaning that if your employment agreement does not expressly provide for it, there is no obligation to pay. Redundancy . Employment Law and Redundancy Compensation NZ Herald. You should be invited to at least 1 individual meeting with your employer to discuss redundancy. In some countries, redundancy pay is mandatory. Redundancy is when an employer reduces their workforce because a position or positions are no longer needed. Fill out the form below and we’ll be in touch as soon as possible. If you are an employer and you wish to make an employee redundant, you must ensure: that there are genuine commercial reasons for doing this (that is, that the redundancy is substantively justified) that the process by which this is done is fair (procedural fairness), and that you comply with any relevant terms in the employment agreement Employment Lawyers and Employment Advocates provide the same services. Read the latest on redundancy during Covid-19. Redundancy law NZ states that employment agreements cease to continue with the sale. 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. New Zealand Employment Law Specialists. Contact us today by leaving your details on the online form. We assist employees, employers and employment lawyers with dedicated pages of information for Employees and Employers.Our first consultation is free, so you can call us for a chat on our free 0800 number, 0800 HELP ME (0800 435 763) or email danny.gelb@employmentlaw.net.nz about your situation without … If your contract does not cover redundancies, then you are not entitled to a redundancy payment. tracy@cwlaw.nz. how to fire an employee; Employment Restructuring and Redundancy; Employers Guide to Disciplinary Meetings; Employment Agreement New Zealand; FAQ. Describes redundancy payments and how statutory redundancy is calculated. Redundancy Read more. 3022. It is important to remember that it is the position that is surplus, not the employee. In this common scenario, employees find themselves technically redundant. Redundancy is generally considered to be a situation where an employee’s position is surplus to the employer’s commercial needs. If the employee agrees you may give an extended notice period while they continue in their role, or in a special project of some sort, while the change implementation is completed (or as agreed). That means unless your employment agreement provides for redundancy pay, you don’t get any. ... and redundancy should only be considered if no suitable alternative arrangements have been found. If you are unhappy at work, we can help. Articles. Employers under the current legislation need to be extremely careful in dealing with employees in regards to issues such as applying the correct redundancy process NZ currently operates under. Redundancy. Call us first for your free consultation. Redundancy Payments. 20 August. A discussion at the meeting would include input and feedback from you to the employer over the issues of redundancy. The employer has to get it right, so if you have been fired or forced to quit, we can help. Don't forget that our initial consultation with you is free. We are NZ's №1 No Win No Fee Employment Advocates. checking what date the job is to be disestablished. Section 4 of the Employment Relations Act 2000 requires employers to act in good faith when making employees redundant. Primarily, take a look at your employment contract and what it says on redundancy. An Employer needs to be able to justify the redundancy, and follow fair procedure throughout the process. 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 … Request a call back. If your employer chooses to end your employment through dismissal, restructure or redundancy, they need to follow a formal process. 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. Apart from your individual meeting there isn’t a set process. It also requires an employer who is proposing to mak… 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. We can represent employees/individuals or employers. Tuahu.Watene003@msd.govt.nz. Employment Advocates are experts in resolving conflicts and disputes at work. 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”. Under current employment law, if your employment agreement says nothing about redundancy compensation or says you are not entitled to it, then you generally are not entitled to any. We are facing unprecedented times with the Covid-19 pandemic and it - Nationwide employee advocacy for all employment issues - We cover all costs for grievance cases. During the restructuring consultation, your employer may ask employees whether any of them wishes to be made redundant when the workplace is restructured. Under New Zealand employment law, employers and employees both have rights and responsibilities. OWEN, N. and PECK, S. (2013) Redundancy law : a guide to using the law for union reps. LRD Booklets. Under New Zealand employment law, employers and employees both have rights and responsibilities. Employment Agreements . Go. What are the rules on qualifying for a redundancy payment. In all circumstances you should call us first Robert Thompson is Christchurch’s leading employment law advocate. An overview of redundancy, with links to more detailed information. The employee must be given a genuine opportunity to comment on the possibility of redundancy. 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. We can represent employees/individuals or employers. 6th March 2018. The workplace change process gives an outline of the process an employer should follow when working through a change. check_list; redundancy; Employment Agreement Review; Employers. 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. Transitioning out of employment can be difficult and with so many factors at play in redundancies, it can be confusing. There are various ways to determine if you have been replaced after your employment has finished. Redundancy? There are several ways in which employment relationships may be ended, such as resignation, retirement, dismissal or redundancy. An employer must follow a proper and fair process and all redeployment options exhausted before any positions are made redundant. Flo.Samuels005@msd.govt.nz. We believe that everyone should have access to quality employment law … Waikato Tuahu Watene . Employment Relations Amendment Act 2018 Principles developed by the Employment Court and Employment Relations Authority include: There must be a genuine redundancy situation … Make sure you check your contract of employment, as it might state that you’re entitled to longer notice periods. Other guide categories View all categories. In the employment law of the UK, certain rights accrue to someone who is made redundant, i.e. Keep an eye on job advertisements to see if you can find your job listed in the situations vacant. If they do not, you’re responsible for paying that tax yourself. A redundancy payment is taxable income. Redundancy is often confused as an easy way to remove an employee. Constructive Dismissal. 90 Day Trial Periods; Employee Disciplinary Meeting; employment unfair dismissal; Employment Restraint of Trade; Employment … If you do, then the first step is to raise a personal grievance for an unjust termination. 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. Minimum wage | Employment New Zealand Please don't hesitate to contact us on 0800 746 225 or email us to discuss the particulars of your situation. 0800 088 4022. 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. Our services are available in English and Chinese/Mandarin. Please note that this content will change over time and may be out of date. 0. (2016) Redundancy. CHURCHILL, F. (2020) Is any sector safe from Covid-related redundancies? Auckland Flo Samuels . 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. Employment Law Brochure; Employee Disciplinary Meeting. 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. is mediation really a confidential process, how is mediation different to arbitration, Nicol v Canterbury Concrete Cutting NZ Limited. Check with IR what tax you should have paid — you may have paid too much tax or not enough. Join our subscribers to receive the latest Employment New Zealand newsletter. It is important to remember that it is the position that is surplus, not the employee. It’s important for employers to use good hiring processes, and for everyone to follow minimum rights and responsibilities. No two redundancy situations are the exactly the same. Still haven't found what you're looking for? Our services are available in English and Chinese/Mandarin. The law requires that a restructuring clause be put into all employment agreements. Read More. Does your situation reflect what your contract says? Redundancy and Restructuring; Harassment and Workplace Bullying ; Negotiations ; Wrongful Dismissal; If you need to hire a lawyer in Dunedin to represent you in any employment matter such as an unfair dismissal, wrongful dismissal or employment disputes, Jenny Beck Law is the firm who can give solid employment law advice. 2nd ed. Jobs for life are a thing of the past, but when you're made redundant, it can be awful. 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. Employment Minefield for Employers. This would be by way of written notice, giving you at least 24 hours and advising you that you can bring along a support person. Redundancy Payments. Qualifying for redundancy. An employer may need … redundancy support and will put you in touch with someone in your area. Some employers use the redundancy caper to get rid of staff they don't want, without legitimate grounds. Employers need to prove that they acted in a fair and legal way or face legal consequences. It still amazes me what some employers put in their employment contracts. The length of ‘reasonable notice’ depends on a variety of factors, such as: Remember that unused annual leave and salary, along with any other entitlements, up to the end date is payable. Journal articles. 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. They must also make sure your workplace is safe. Whether employees receive redundancy payments is dependent on the applicable employment agreements and is a matter for negotiation between the parties. So when signing up to a new job, it pays to check your redundancy entitlements. It was considered a management prerogative to structure the business as an employer saw fit. We specialise in employment law and represent employees and employers with a pragmatic focus on resolving employment relationship issues. This section provides help in some key areas. Once we have had a look at your situation we can advise if you have a valid case or not. 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. Starting a new job is an exciting and challenging time. Sometimes employers use redundancy as a way to get rid of an employee who they no longer want for various other non genuine reasons. News and updates ... to pay $90,000 in penalties for breaching employment laws. Brent.MacDonald001@msd.govt.nz. Firstly, we can act as the advocate for you, i.e. You must enable JavaScript to submit this form. the amount of compensation being paid (if any). Redundancy Law. ® Ministry of Business Innovation and Employment, Calculating payments for holidays & leave, Psychometric testing and assessment centres, Things an employment agreement must contain, Offering and negotiating employment agreements, Code of good faith in collective bargaining, Local council Easter Sunday shop trading policies, Problems getting domestic violence rights, Leave and pay entitlements during COVID-19, COVID-19: Guidance for payroll professionals, Employment New Zealand's approach to COVID-19, COVID-19 Workers and Workplaces Assistance Fund, Public, sick, bereavement, alternative pay, Changes to tax legislation for employee share schemes, Holiday and leave entitlement and payment ‘must-knows’, Positive conversations and reaching agreement, What are ethical and sustainable work practices, Demand for ethical and sustainable work practices, End-to-end assurance systems and processes, Identify and minimise labour rights issues, Assessing the impact of structure change on jobs, Restructuring when a business is sold or transferred, The benefits of being a disability confident organisation, Plan to become a disability confident organisation, Disability information and resources for employers, Resources and government support for disabled employees and jobseekers, Employers who breached employment standards, Applying for employment relations education course approval, Wage subsidy and Leave Support: Complaints about employers, Calculating payments for holidays and leave, Employer's approach to assuring ethical and sustainable work practices, Franchisor's approach to assuring ethical and sustainable work practices, Recruiters and employment brokers approach to assuring ethical and sustainable work practices, checking that all redeployment and alternative options have been worked through with the employee. Covid 19 and Redundancy. An employer must follow a fair process whenever they want to make an employee redundant. Under New Zealand law it is not compulsory for an Employer to pay redundancy compensation. Redundancy arises where the role becomes superfluous to the requirements of a business. NZ Herald Home ... employers should ensure they are compliant with New Zealand's employment law with regards to redundancy… It happens. Job Hunting Making a change Working life Making a change Job loss Job loss 3 min read Rights for redundancy. Has the owner been on a big holiday recently? Understand various employment issues with these self-help articles explained in a plain English HowTo.. format. counselling support where outplacement is not made available or outplacement does not include counselling, other training that may improve the employee's chances of future employment, the employee’s seniority and/or remuneration package, the employee’s ability to find alternative employment. Redundancy focuses on the role itself and not the individual. @msd.govt.nz. Things can change in an employment situation for either party. The topic of redundancy needs to be stated in the written notice. Amendments to the Act now state more clearly the minimum requirements for employers proposing to make a decision that will affect their employee… Are there any other options for the employee to stay on longer while further redeployment options are considered? Redundancy. People Management (online). A job may not work out as either party intended or hoped for at the start. The best way to prevent and resolve relationship problems between employers and employees. you appoint us as your support person or representative and we solely represent your best interests with the issues that you have. A notice period is the amount of time between when your employer tells you that you will be made redundant and your last working day. If you have a workplace issue, you may want to use the Early Resolution Service to resolve it early, quickly and informally. It should only happen after all redeployment options have been exhausted. In some countries, redundancy pay is mandatory. NZ; Career Advice. 297, Regulation on severance pay and rules governing pensions; Law of 23 August 2004, n. 243 Pension regulations and government mandates in the public pension sector, to support supplementary pensions and stable employment and for the reorganisation of social security and mandatory assistance; Law … So when signing up to a new job, it pays to check your redundancy entitlements. nzherald.co.nz. If there is no specific clause in an employment agreement giving a period of notice in a redundancy situation, ‘reasonable notice’ must be given. The employee does not have to agree to a later date. If they do not follow it properly you could be entitled to compensation. I asked employment lawyer Priya Magar at law firm EMW a few commonly asked questions around the redundancy process. A woman has been awarded nearly $40,000 after the Employment Relations Authority (ERA) ruled her redundancy was unfair. Redundancy and fairness. It came into force on 28 June 2020. Editor. Employment Law Advocacy - Employment Law matters with resolution focused solutions. Redundancy, Restructuring, Strike and Lockout Advice Call for a free 15 minute phone consultation. Employment law handbook. Employers are also under an obligation to act good faith at all … Your employer has to follow a fair redundancy process if you’ll have worked for them for at least 2 years by the time your job ends. There are a couple of aspects to being made redundant that you can look at. Help yourself to a range of New Zealand Employment agreements including and Consultancy agreements, Employee Warning Letters, Termination and Redundancy agreements. Employers cannot make someone redundant without going through the workplace change process first. Check Your Employment Agreement: If your employment agreement mentions redundancy compensation, it will probably also show what the amount of compensation will be. NZ Employment documents & articles. Employment Advocates are experts in resolving conflicts and disputes at work. Have they made any major purchases lately? If you choose to be made redundant, then … 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. We can act in one of two capacities for employment law situations or disputes in the workplace. The saving grace is that you can not contract out of law or, in other words, a clause that goes against New Zealand employment law is not enforceable in an employment contract. Guides in this category View all. 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