It is important to understand your rights and options when it comes to redundancy law. The process of being made redundant is an emotional and stressful time but understanding the rights you have can significantly ease the situation. Your employer can only make you redundant for legitimate commercial reasons that mean your position is no longer needed.
There are several situations that can validate a redundancy or termination of your contract; firstly your employer may reduce the number of employees for efficiency reasons or to cut costs, this includes on or following the appointment of a receiver to a business or because the job can be carried out by other means such as contracting out work. Another situation is where the description of your job has been materially changed where the responsibilities and duties of the position are no longer the same. The relocation of a business or position of a company that is over more than a reasonable distance from its initial location is also a legitimate reason for redundancy.
Redundancy law specifies that your employer cannot make you redundant for reasons that do not relate to commercial needs. Redundancy cannot be used to dismiss you for personal reasons or things that relate to you personally. Things such as performance and reliability are not grounds for redundancy and neither is age, there is no obligatory retirement age unless your employment agreement stipulates it. Your employer also cannot pressure you directly or indirectly to resign from your position or make your working situation unbearable for you. This is recognised as forced resignation and you may be able to file a personal grievance claim if this occurs.
Your employment provider must communicate with you if they are considering making significant changes to your employment situation or are intending to make you redundant. They are required to give employees information about any decisions being contemplated and give them time to comment before any decision is finalised. Under the Employment Relations Act 2000, the groups involved in the employment relationship are obligated to perform in good faith. This indicates that the parties involved cannot deceive each other, either directly or indirectly. Good faith is more than just mutual trust: the two parties need to be active and constructive in engagement.
Redundancy law in New Zealand does not stipulate that redundancy payments have to be made. Employers have no obligations to give you compensation in the event of your redundancy unless it is specified in the employment agreement.
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