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.
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.
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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