Your employer can only make you redundant if your position is no longer needed. They can’t make you redundant because of your 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.
If your employer sells the business
If you're made redundant because your employer sells the business, they have to go through the right process.
If you're pregnant or on parental leave
You can't be made redundant because you're pregnant or on parental leave. There are rules protecting you if your job is made redundant while you're on parental leave.
Who can help
If you belong to a union, you can contact them for help with any issues.
You can find lawyers through the New Zealand Law Society. Choose one that has 'employment' as their area of practice.
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 the Employment Relations Authority or in court.
Talk to Inland Revenue if you're made redundant
Tax on redundancy payments
A redundancy payment is taxable income.
Your employer should take the tax from your redundancy payment and pay it to Inland Revenue for you. If they don't, you're responsible for paying that tax yourself.
Check with Inland Revenue what tax you should have paid — you may have paid too much tax or not enough.
KiwiSaver contributions deducted from your pay stop when your employment ends.
Contributions won't be deducted from any redundancy payment you receive.
Working for Families Tax Credits
The amount of tax credit you get is likely to change after you've been made redundant.
Contact Inland Revenue so they can make sure you're getting the right amount and don't end up owing money.
Child support payments
Contact Inland Revenue to find out if your child support payments need to change.
Student loan repayments
Student loan repayments should be taken out of your redundancy payment. It's your responsibility to make sure you pay the right amount.