Is Your Redundancy Actually Genuine? How to tell a real restructure from an unfair one.

Redundancy is one of the most misused words in New Zealand workplaces. A genuine redundancy is about the role no longer being needed, not the person. If your employer is really just trying to remove you, dressing it up as a restructure doesn’t make it lawful, and you may have a personal grievance.

When is a redundancy genuine?

Under the Employment Relations Act 2000, a redundancy must be for genuine commercial reasons and carried out with a fair process. The courts (see Grace Team Accounting v Brake) look at whether the business reasons were real and whether a fair employer could have made that decision. Red flags include:

A “restructure” that removes your role but recreates it under a new title
No genuine business or financial rationale
The decision being made before any consultation happened

Process matters as much as the reason.

Even a genuine redundancy can be unjustified if the process was unfair. Your employer must consult you genuinely, provide the information they’re relying on, consider your feedback with an open mind, and look at redeployment options before confirming the decision.

What to do if you're being made redundant

Ask for the business case in writing. You’re entitled to the information behind the proposal.
Engage with the consultation. Raise alternatives and redeployment options.
Check your agreement. Some contracts include redundancy compensation.
Get advice early. The 90-day clock to raise a grievance still applies.

We offer a free initial consultation to review your situation and make sure your rights are protected. If you have received a restructure proposal, been told your role is at risk, or already been made redundant, contact McKenzie Law today. The earlier we are involved, the more options you have.

Disclaimer: this article is general information only and is not legal advice. Every situation turns on its own facts. For advice on your circumstances, please contact us directly.

FAQs

My employer said the decision was already made when they “consulted” me — is that legal?

No. Consultation must take place before the decision is finalised, with a genuinely open mind. An employer who has already decided the outcome before consulting has not met the legal standard. This is one of the most common procedural failures in NZ redundancy processes — and one of the strongest bases for a personal grievance.

My role was made redundant, but someone else is now doing very similar work — what does that mean?

It is a strong indicator of a sham redundancy. If the substance of your role has effectively been redistributed or a near-identical position has been created or filled shortly after your disestablishment, the redundancy may not have been genuine. Seek legal advice and document everything you know about what happened to your duties.

Am I entitled to a redundancy payout?

Only if your employment agreement provides for one, or you successfully negotiate one. There is no statutory minimum in New Zealand. However, if the redundancy process was flawed, you may be entitled to remedies through a personal grievance — including compensation for hurt and humiliation and lost remuneration — which can exceed any contractual payout.

My employer gave me 48 hours to respond to the restructuring proposal — is that enough time?

It depends on the complexity of the proposal, but 48 hours is generally very short for a significant restructure affecting your employment. Best practice under NZ law is to provide adequate time to seek independent advice, prepare a response, and genuinely engage. A tight deadline that prevents meaningful consultation is a procedural flaw that can undermine the entire process.

Can I challenge a redundancy if I’ve already signed my exit documents?

If the documents were signed and countersigned by an MBIE mediator, the settlement is likely full and final. However, if you signed an agreement directly with your employer without MBIE involvement, the position may be more complex. Either way, seek legal advice immediately — the window to act may still be open depending on the circumstances.

Talk to McKenzie Law before your next move

At McKenzie Law, we represent employees only — and we have seen every variation of a rushed, predetermined, or retaliatory redundancy there is. If you have received a redundancy proposal, if your consultation felt like a formality, or if you believe your role was not genuinely surplus — we want to hear from you.

McKenzie Law is an Auckland-based employment law firm representing employees across New Zealand — including Auckland, Wellington, Christchurch, Hamilton, Tauranga, and all regions. All content is general in nature and does not constitute legal advice. For advice specific to your situation, contact us directly.