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BCG Law Ph: 0800 83 83 83
Employment Law

Redundancy Claims

Redundancy must be genuine. If your employer used restructuring as a pretext to get rid of you, or failed to follow a fair process, you may have a strong personal grievance claim.

  • Redundancy must be genuine and not a pretext
  • You must be consulted before a decision is made
  • Redeployment options must be considered

Was your redundancy genuine?

What makes a redundancy unjustified?

A genuine redundancy occurs when your role is no longer required due to legitimate business reasons such as restructuring, downsizing, or technological change. However, redundancy is frequently misused by employers as a way to dismiss employees they wish to remove for other reasons.

For a redundancy to be lawful in New Zealand, the employer must have a genuine business reason for the restructure, must consult with affected employees before making a final decision, must consider whether there are alternative roles available, and must follow a fair and transparent selection process where multiple roles are affected.

If your employer failed on any of these points, you may have grounds for an unjustified dismissal claim despite the redundancy label.

Key question

Did your employer consult with you before the decision was made โ€” or did they simply inform you the decision had already been made? Genuine consultation must happen before a final decision, not after.

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How we can help you

We examine the reality behind your redundancy and fight for your rights if the process was unfair.

Genuineness assessment

We assess whether the redundancy was a genuine business decision or a pretext for dismissal.

Process review

We review the consultation process your employer followed to identify any procedural failures.

Redeployment advice

We advise on whether your employer properly considered redeployment options before making you redundant.

Grievance filing

We raise a formal personal grievance within the 90 day timeframe if grounds exist.

Redundancy entitlements

We ensure you receive any redundancy compensation you are entitled to under your agreement or the law.

Mediation & resolution

We represent you through mediation and work to achieve the best possible outcome.

What the process looks like

Here is what a fair redundancy process should involve โ€” and what we do when it falls short.

01

Initial consultation

We review your situation and advise whether the redundancy process followed by your employer meets the legal standard.

02

Evidence gathering

We gather relevant documents including your employment agreement, restructuring proposals, and correspondence.

03

Raise a grievance

If the redundancy was unjustified, we raise a formal personal grievance with your employer within 90 days.

04

Employer response

Your employer responds to the grievance. We review their position and advise on next steps.

05

Mediation

We attend mediation with you and work toward a settlement that reflects the strength of your claim.

06

Resolution

We pursue compensation for lost wages, humiliation, and any other remedies available in your circumstances.

Restrictions & disqualifiers

There are situations where challenging a redundancy may be more difficult, though we encourage you to seek advice before ruling out a claim.

Genuine business reasons

If the restructure was a genuine response to real business pressures and the process was fair, it may be difficult to succeed with a grievance claim.

90 day time limit

You must raise your personal grievance within 90 days of the dismissal. This deadline is strict.

Contractor status

If you were engaged as a contractor, the employment law protections around redundancy do not apply in the same way.

Redundancy compensation

Unless your employment agreement specifically provides for redundancy compensation, there is no statutory entitlement to a redundancy payment in New Zealand.

Selection process

In collective redundancies, if the selection process was transparent and applied fairly, challenging your individual selection may be difficult.

Unsure if it was genuine?

Many redundancies that appear legitimate on the surface have significant procedural flaws. Contact us for a free review before deciding not to pursue a claim.

Was your redundancy genuine?

If something doesn't feel right about how your redundancy was handled, trust your instincts and talk to us. The initial consultation is free.

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