Redundancy Law: Understanding Your Rights

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It’s important to realize your rights and options regarding redundancy law. The entire process of being made redundant is a psychological and stressful time but understanding the rights you have got can notably relieve the problem. Your company can only just cause you to redundant for genuine reasons that are commercial suggest your situation is not any longer needed.

There are many circumstances that will validate a redundancy or termination of one’s contract; firstly your manager may lessen the true number of workers for effectiveness reasons or to lower your expenses, this consists of on or following the appointment of a receiver to a small business or as the task can be executed by other means such as contracting out work. Another situation is where the description of the work is materially changed in which the responsibilities and duties for the position are not any longer the exact same. The relocation of a business or place of an organization that is finished a lot more than a distance that is reasonable its initial location is also a legitimate basis for redundancy.

Redundancy legislation specifies your employer cannot allow you to redundant for reasons which do not relate genuinely to needs that are commercial. Redundancy can not be used to dismiss you for individual reasons or things that relate to you myself. Things such as for instance performance and dependability aren’t grounds for redundancy and neither is age, there isn’t any obligatory retirement age unless your work agreement stipulates it. Your employer also cannot pressure you straight or indirectly to resign from your place or make your situation that is working unbearable you. This is recognised because forced resignation and you might manage to file a grievance that is personal if this does occur.

Your employment provider must communicate they are considering making significant changes to your employment situation or are intending to make you redundant with you if. These are typically necessary to give workers information about any decisions being contemplated and provide them time to comment before any decision is finalised. Beneath the Employment Relations Act 2000, the teams mixed up in employment relationship are obligated to execute in good faith. This suggests that the ongoing parties involved cannot deceive each other, either directly or indirectly. Good faith is more than just mutual trust: the 2 parties have to be active and constructive in engagement.

Redundancy law in brand new Zealand does not stipulate that redundancy payments have to be made. Employers do not have responsibilities to provide you with payment in the event of your redundancy unless it is specified into the work agreement.


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