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EmploymentNZ
Redundancy Notice Template
A redundancy notice formally notifies an employee that their role is being disestablished and their employment will end. Use our free New Zealand template to record genuine reasons, consultation, and final entitlements under the Employment Relations Act 2000.
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Pacific Retail Solutions Ltd.
22 Quay Street, Auckland CBD, Auckland 1010
+64 9 555 0100
hr@pacificretail.co.nz
15 April 2026
Daniel A. Crawford
45 Fitzgerald Avenue, Christchurch 8011
RE: Notice of Redundancy
Last Day: 13 May 2026
Dear Daniel A. Crawford,
We write to formally notify you that the position of Retail Operations Coordinator in the Retail Operations department at Pacific Retail Solutions Ltd. has been declared redundant. This decision has been made on the basis of structural reorganisation — a restructuring of the business has resulted in this position becoming surplus to requirements. This notice is issued in accordance with the Employment Relations Act 2000 (ERA 2000, ss 103A and 104C), which requires that any redundancy be genuine — that is, not used as a pretext for an unjustified dismissal.
Reasons for Redundancy: Following a comprehensive review of our retail operations, the company has determined that the Retail Operations Coordinator role is no longer required as a standalone position. The responsibilities of this role have been incorporated into the newly created Regional Operations Lead role and distributed among existing team leaders.
Selection Criteria: The selection of your role for redundancy was based on the function of the role relative to the restructured business needs. This process was conducted fairly and without discrimination, consistent with the good faith obligations under ERA 2000, s 4.
Consultation Process: A consultation process was conducted on 1 April 2026 and 8 April 2026. You were provided with a written proposal letter dated 25 March 2026 outlining the proposed restructure. You were invited to provide feedback and attended two consultation meetings with HR. Your feedback was considered in good faith prior to this final decision being reached. In conducting this consultation, the employer has complied with its obligation under the ERA 2000 to act in good faith and to provide you with relevant information and an opportunity to be heard before the decision was made.
Notice Period and Final Day: Your employment will end after a notice period of 4 weeks. Your last day of employment will be 13 May 2026. During your notice period, you are expected to continue your normal duties unless otherwise agreed in writing.
Final Pay and Holiday Entitlements: Your final pay will include all outstanding wages, accrued but untaken annual leave (calculated in accordance with the Holidays Act 2003), and any other entitlements owing under your employment agreement. Payment will be made by the next regular pay date following your last day of employment, unless otherwise agreed.
Redundancy Compensation: As a gesture of goodwill and in recognition of your service, the employer will pay you a redundancy compensation payment of $3,000.00 NZD. This payment is in addition to your statutory entitlements under ERA 2000 and the Holidays Act 2003, and does not affect your right to holiday pay or other accrued entitlements. Note: Redundancy compensation is not a statutory requirement in New Zealand unless specifically provided for in your employment agreement or a relevant collective agreement.
Right to Raise a Personal Grievance: You have the right to raise a personal grievance under ERA 2000, s 114 if you believe your redundancy was not genuine or otherwise constitutes an unjustified dismissal. A personal grievance must be raised within 90 days of the date of the action giving rise to the grievance (or within 90 days of the date you became aware of the action). Please contact Rebecca J. Sinclair, Human Resources Manager or seek independent legal advice if you wish to explore this right. The employer encourages you to raise any concerns directly in the first instance.
We acknowledge that this news will be difficult to receive, and we appreciate the contribution you have made during your employment with Pacific Retail Solutions Ltd.. We are committed to supporting you during this transition. If you have any questions about this letter or your entitlements, please contact Rebecca J. Sinclair, Human Resources Manager. We wish you well in your future endeavours.
YOURS SINCERELY,
Rebecca J. Sinclair
Human Resources Manager
Date: ____________________
Available as a print-ready PDF or an editable Microsoft Word (.docx) file.
What Is a Redundancy Notice?
A redundancy notice is the formal written communication confirming that an employee’s role has been made redundant and that their employment will therefore end. In New Zealand, redundancy is a form of dismissal and must meet the "justification" test in section 103A of the Employment Relations Act 2000: the employer’s actions must be what a fair and reasonable employer could have done in all the circumstances.
A lawful redundancy requires both a genuine commercial reason (business reason for disestablishing the role) and a fair process. The process generally involves: proposing the change with a reasons-based proposal document, consulting in good faith with affected employees, genuinely considering feedback and redeployment, and only then confirming the decision. The redundancy notice itself is typically the final step after consultation has closed.
The notice should state the decision clearly, record the genuine reasons, confirm that consultation has taken place, specify the last day of employment, set out final pay (including notice, accrued annual holidays, and any contractual redundancy compensation), and explain post-termination obligations. It is the document on which most employment tribunal cases ultimately turn.
What's Covered in This Template
Our redundancy notice captures the decision, process, and final entitlements needed to complete a lawful NZ redundancy.
Employer and Employee Details
Employer (with NZBN) and employee names, position, and start date for context.
Statement of Decision
Clear confirmation that the employee’s role has been made redundant.
Genuine Commercial Reasons
Written record of the business reasons for the redundancy, meeting the section 103A test.
Consultation Record
Reference to the proposal document, consultation meetings, and feedback considered.
Redeployment Considered
Statement that redeployment options were considered and outcomes explained.
End Date and Notice Period
Last day of employment, notice period, and whether worked or paid out in lieu.
Final Pay and Entitlements
Accrued annual leave, outstanding wages, notice, and any contractual redundancy compensation.
Continuing Obligations
Confidentiality, restraint of trade (if applicable), and return of employer property.
Support and Assistance
Any outplacement support, career transition, or reference offered.
Appeal and Problem Resolution
Information on raising a personal grievance under section 103 within 90 days.
How to Issue a Redundancy Notice
Use this notice as the final document after a fair consultation process.
- 1
Confirm Consultation Is Complete
Ensure you have consulted with the employee on a proposal and considered their feedback before issuing the notice.
- 2
Enter Parties and Position
Provide employer and employee details, the position being disestablished, and the length of service.
- 3
Record the Decision and Reasons
State the decision clearly and set out the genuine commercial reasons for the redundancy.
- 4
Set End Date and Final Pay
Specify the last day of employment, notice arrangements, and a breakdown of final pay.
- 5
Review and Deliver
Review for completeness, download the PDF, and deliver it in a face-to-face meeting where possible.
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Legal Considerations
Redundancy is the highest-risk form of dismissal in New Zealand. Process errors are more common than substantive errors.
This template is for informational purposes only and does not constitute legal advice. Before making any redundancy, consult a New Zealand employment lawyer to ensure both substantive and procedural fairness.
Reviewed for New Zealand law
Section 103A Justification Test
Section 103A of the Employment Relations Act 2000 requires that the employer’s actions be what a fair and reasonable employer could have done in all the circumstances. In Air New Zealand Ltd v V [2009] ERNZ 185 the Employment Court confirmed that genuine commercial reasons are required, and the courts will not second-guess genuine commercial decisions. However, the process must still be fair, including genuine consultation and consideration of redeployment.
Good Faith Consultation
Section 4 of the Act imposes a duty of good faith, which in restructuring contexts requires the employer to provide affected employees with information relevant to the continuation of their employment, and an opportunity to comment, before a final decision is made. The leading authority is Wellington International Airport Ltd v Air Nelson Ltd [2009] NZCA 259. A pre-determined decision disguised as consultation is a classic source of unjustified dismissal findings.
Redeployment Obligation
Where the employer has other suitable roles, it must genuinely consider redeploying the affected employee. The scope of this obligation is fact-dependent but was confirmed in Jinkinson v Oceana Gold (New Zealand) Ltd [2010] NZEmpC 102. Failure to consider redeployment where reasonable alternatives existed is a frequent cause of successful personal grievances.
Notice and Redundancy Compensation
The Act does not prescribe redundancy compensation. Entitlement (if any) depends on the employment agreement, applicable collective agreement, or established custom. Contractual notice periods must be honoured, and all accrued annual holidays under the Holidays Act 2003 must be paid out. Restructures affecting 20 or more employees may also trigger additional good-faith obligations.
Frequently Asked Questions
Complete a Fair Redundancy
Issue a clear, process-compliant New Zealand redundancy notice that documents consultation, records genuine reasons, and confirms final entitlements.
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