Your employer can only make you redundant if your position is no longer required. They can’t make you redundant for performance, pregnancy or illness.
What happens when you're made redundant
If your employer says they're making you redundant they need to follow a proper process and explain things to you.
Explains what redundancy is and the process your employer has to follow.
Employers can’t just dismiss you if you’re pregnant or on parental leave.
How restructuring can affect your job.
You can get your rights and what you can do next explained to you for free.
If you belong to a union, you can contact them for help with any issues.
Community law centres offer free legal information and advice to people who can't afford to see a lawyer privately. If you're eligible, they may also be able to:
- offer ongoing legal assistance
- help you with mediation
- represent you at tribunals or in court.
Free advice about just about anything — in your local area and in your own language.
Sorting your money out
Following redundancy you may be able to get financial help and your tax, student loan or child support payments may change. It's also a good opportunity to set up a new budget to help manage your money.
A redundancy payment is taxable income. Your employer should take out the tax you need to pay on your redundancy payment and pay it on your behalf. If they don't, you'll be responsible for paying that tax yourself. Check with IRD what tax you should have paid as you may have paid too much tax, or not enough.
If you receive Working for Families tax credits you need to tell IRD if you’re made redundant as the amount of the tax credit you can get is likely to change. They can then ensure you’re claiming your full allowance and won't end up with a debt to pay back at the end of the tax year.
Being made redundant can affect how you're assessed for child support and your ability to pay it, especially if you receive a redundancy payment. You need to contact IRD to discuss your situation.
Student loan repayments should be deducted from any redundancy payment you receive. You need to contact IRD to discuss your change of circumstances.