Employment Lawyers · Employment & Labour Law

Severance

Expert legal advice on severance packages, redundancy, and termination across New Zealand. Protect your rights and negotiate fair outcomes.

Your rights at work, protected.

Get a free quote

Talk to a lawyer now — free case review

● AI legal assistant · online

Get clear guidance on your employment situation — severance, wrongful dismissal and your rights. No appointment, confidential.

Runs in your browser · free · confidential
Severance in New Zealand
An employee with 15 years of service is informed their role is redundant, yet the offered severance package fails to account for long service, accrued leave, and a genuine redundancy process. In New Zealand, severance—encompassing redundancy pay, notice periods, and termination entitlements—is governed by a complex interplay of employment agreements, good faith obligations, and statute. Our legal team provides clear, strategic advice to employees and employers nationwide, ensuring outcomes that respect legal rights and commercial realities. For comprehensive national employment law support, explore our services via our hub for an employment lawyers in New Zealand.

Our services

Process

Employment law in New Zealand

Our methodology is a structured legal process, not a technical one. We begin with a detailed review of your employment agreement, the employer's justification for termination, and all relevant communications. We assess compliance with the Employment Relations Act 2000, the obligation of good faith, and any applicable collective agreements. For instance, we scrutinize whether a redundancy process was genuine and fairly conducted, which is a factual and legal test. We then advise on negotiation strategy, potential personal grievance claims, and mediation through the Employment Relations Authority. Our goal is to resolve matters efficiently, with over 80% of cases settling through negotiation or mediation before progressing to the Employment Court.

At a Glance

ParameterReference Value
Typical Case Review Timeline1-3 business days
Common Process Duration4-12 weeks
ERA Mediation Wait Time6-10 weeks
Key Assessment FactorGenuine Justification & Process

Local Considerations — New Zealand

Severance practices across New Zealand are unified under national law but influenced by regional industry profiles. In Auckland's competitive corporate and tech sectors, packages often include enhanced payments and restraint of trade clauses. Wellington's public sector focus involves strict adherence to restructuring policies and collective agreements. Christchurch's rebuild economy has seen specific redundancy scenarios. Our national team adapts its approach to these local market nuances, whether advising a finance professional in Auckland on an executive termination or a manufacturing worker in Hamilton on a plant closure, ensuring advice is both legally sound and contextually aware. For localized support, our network provides coverage in key centres.

Request a Quote

Our team reviews your project and issues an initial report at no cost.

Or write us directly at info@employmentlawyer24.org

Standards & Compliance

  • Employment Relations Act 2000
  • Good Faith Obligations (s 4)
  • Holidays Act 2003
  • Privacy Act 2020
Our national team is equipped to provide precise, practical legal advice on severance and termination matters across New Zealand. We are committed to guiding clients through these challenging processes with clarity and strategic focus.

Frequently Asked Questions

What constitutes a genuine redundancy in New Zealand?

A genuine redundancy requires that the employer's need for the employee's role to be performed has truly diminished or ceased. It is not a guise for dismissing an employee for performance or conduct. The employer must also follow a fair process, including consultation, as required by the duty of good faith under the Employment Relations Act 2000.

What is typically included in a severance package?

A comprehensive package may include redundancy compensation (often calculated on years of service), payment for the notice period, payment for any accrued annual holidays and alternative holidays, and sometimes an ex gratia payment. The terms are highly variable and depend on the employment agreement and the specific circumstances of the termination.

How long does the severance negotiation or mediation process usually take?

From initial advice to resolution, most cases are concluded within 4 to 12 weeks. If a matter proceeds to mediation with the Employment Relations Authority, scheduling can add 6-10 weeks. Litigation in the Employment Court extends timelines significantly, often to 12-18 months, which is why we prioritize earlier settlement.

How much does severance legal advice cost in New Zealand?

Legal costs depend entirely on the complexity of the case, the volume of documentation, and whether mediation or litigation is required. For a straightforward review and negotiation, costs are typically contained. We provide transparent fee agreements upfront and can often offer fixed-fee options for initial assessments. The best approach is to request a specific proposal tailored to your situation.