{"id":1145,"date":"2020-12-11T03:20:55","date_gmt":"2020-12-11T03:20:55","guid":{"rendered":"http:\/\/nz.legalvision.com.au\/?p=1145"},"modified":"2024-10-01T14:57:10","modified_gmt":"2024-10-01T01:57:10","slug":"how-to-calculate-redundancy-pay-in-new-zealand","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/employment\/how-to-calculate-redundancy-pay-in-new-zealand\/","title":{"rendered":"How to Calculate Redundancy Compensation in New Zealand"},"content":{"rendered":"\n

Your business structure<\/a> may change as it evolves and responds to market changes, often requiring restructuring and, in turn, making some roles redundant. This can be a difficult process for both you, as an employer, and your employees. As such, you should implement best practices and treat your employees legally and fairly. This article will help you understand your business restructuring obligations and how to calculate redundancy compensation in New Zealand. <\/p>\n\n\n\n

What Is Redundancy Compensation?<\/h2>\n\n\n\n

Restructuring your business<\/a> often involves losing roles that are surplus to your business needs. This process is known as redundancy. When you make an employee or seasonal worker redundant<\/a>, you can pay them compensation; however, this is not a requirement in New Zealand and will be subject to the terms you agreed to in your employment agreement.\u00a0<\/p>\n\n\n\n

Your Employer Obligations in Redundancy <\/h2>\n\n\n\n

You must follow a fair process whenever you need to make an employee redundant. The Employment New Zealand website provides some guidelines to follow when changing your workplace. These include:<\/p>\n\n\n\n