Facing Termination in New Zealand? Complete Guide to Employee Rights & Unfair Dismissal
Ron Mckenzie | December 16, 2025
Facing termination at work can be stressful and confusing, but understanding your rights as an employee in New Zealand is the first step toward protecting yourself. Whether you’re dealing with redundancy, performance-related issues, or unfair dismissal, knowing what you are entitled to under NZ employment law is essential.
This guide breaks down the key areas every employee should know when facing termination, including notice periods, final pay, personal grievance processes, and special protections.
Understanding Termination and Unfair Dismissal in New Zealand
Termination can happen for various reasons, and not all are considered unfair. The main types of termination under NZ employment law include:
Performance-based dismissal
– where an employee is let go due to poor performance after reasonable warnings and support.Misconduct dismissal
– for serious breaches of workplace rules or unethical behaviour.Redundancy
– when a position is no longer required, often due to restructuring or downsizing.
Unfair dismissal occurs when an employee is terminated in a way that breaches NZ employment law or their employment agreement. Common examples include:
- Being dismissed without proper notice or consultation
- Being fired for discriminatory reasons
- Termination without following company procedures
Understanding your rights can help you identify if your dismissal was unfair and what steps you can take next.
Notice Periods, Final Pay, and Redundancy Entitlements
When facing termination in New Zealand, employees are entitled to certain payments and notice periods depending on their employment agreement and statutory requirements.
- Notice Periods: Employers must give notice based on your employment agreement or the Employment Relations Act 2000. Typically, this ranges from one to four weeks.
- Final Pay: You are entitled to receive any unpaid wages, holiday pay, and other entitlements in your final paycheck.
- Redundancy Pay: Not all employees are eligible, but those who meet certain criteria can receive compensation when their role becomes redundant.
Knowing your entitlements ensures you receive what you are legally owed and helps protect you from underpayment or unfair treatment.
How to Raise a Personal Grievance in New Zealand
If you believe your dismissal was unfair, you can raise a personal grievance under NZ law. Here’s how:
- Lodge a grievance: Submit a written grievance to your employer as soon as possible, ideally within 90 days of termination.
- Mediation: The Employment Relations Authority may offer mediation to resolve disputes without going to court.
- Employment Tribunal: If mediation fails, you can take your case to the Employment Relations Authority or Employment Court for a formal decision.
Outcomes may include reinstatement, compensation, or other remedies depending on the nature of the grievance.
Employment Agreements and Your Legal Protections
Your employment agreement plays a crucial role in protecting your rights. It should clearly outline:
- Termination procedures and notice periods
- Pay and leave entitlements
- Responsibilities of both employer and employee
Always review your agreement carefully. If an employer fails to follow its terms, you may have grounds for a grievance or claim.
Special Cases and Protections
Some employees have additional protections under NZ law:
- Sick or parental leave: Employers cannot terminate employees while on legally protected leave without valid reasons.
- Migrant workers: All employees in New Zealand, including migrants, are entitled to fair treatment and protection from unfair dismissal.
- Redundancy due to restructuring: Employers must consult and act in good faith when roles are made redundant.
Understanding these protections can help you navigate complex or sensitive situations.
Coping with Termination and Next Steps
Termination can be emotionally and professionally challenging. Some practical steps include:
- Documenting all communications and agreements related to your dismissal
- Seeking advice from an employment law specialist
- Preparing for future job applications and explaining your termination professionally
- Considering career counseling or support services if needed
These steps help protect your rights while supporting your future career growth.
FAQs – Holidays, Leave, and Pay in New Zealand
What is unfair dismissal in New Zealand?
Unfair dismissal occurs when an employee is terminated in a way that breaches NZ employment law or their employment agreement, such as without notice or due process.
Can I file a personal grievance if I was fired unfairly in NZ?
Yes. You can lodge a personal grievance within 90 days of termination and seek mediation or take your case to the Employment Relations Authority.
How does this benefit clients directly?
Clients receive legal support from a team that stays updated, accountable, and aligned with nationally recognised professional standards.
Do migrant workers have the same employment rights in New Zealand?
Yes. Migrant workers are protected under NZ employment law and have the same rights as other employees.
How much notice am I entitled to when terminated in NZ?
Notice periods vary depending on your employment agreement but must meet statutory minimums outlined in the Employment Relations Act 2000.
Protect Your Rights as an Employee in New Zealand
Facing termination is never easy, but knowing your rights can make a significant difference. From notice periods and final pay to personal grievances and redundancy, being informed empowers you to take action.
If you’re dealing with termination, unfair dismissal, or redundancy in New Zealand, seek professional legal advice to ensure your rights are fully protected. Don’t navigate it alone — getting the right guidance can help secure your future and your entitlements.
Contact McKenzie Law today to understand your options and protect your rights.
