Redundancy compensation is a payment made to an employee whose job is made redundant and who loses their job as a result. In New Zealand, there is no legal obligation for employers to provide redundancy compensation to employees when their role is made redundant. However, employers may choose to offer redundancy compensation under an employment agreement or as a result of a collective agreement. Additionally, the employee may be entitled to notice pay and other entitlements according to their employment agreement and the law.
It is important to note that redundancy is the last option and the process of redundancy, including the payment of redundancy compensation, should be followed only when all other options such as redeployment have been considered and exhausted.
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