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Process
Our approach to severance pay cases is methodical and client-focused. We begin with a detailed case assessment, reviewing your employment agreement, the circumstances of termination, and your work history. We analyze your entitlements under the Employment Relations Act 2000, relevant case law, and any applicable collective agreements. A key part of our process involves a Severance Package Review to identify deficiencies and strengths in any offer from your employer. We then develop a negotiation strategy, aiming to secure not only statutory entitlements but also enhanced compensation where justified, such as for hurt and humiliation or lost benefits. Our goal is to achieve a resolution that typically settles within 4-8 weeks, either through direct negotiation or facilitated mediation, avoiding prolonged litigation where possible.
At a Glance
| Parameter | Reference Value |
|---|---|
| Typical Case Resolution Timeline | 4-8 weeks |
| Primary Governing Legislation | Employment Relations Act 2000 |
| Common Process Step | Mediation via MBIE |
| Key Entitlement Review | Notice, Redundancy Compensation, Holiday Pay |
Local Considerations — New Zealand
Severance scenarios vary across New Zealand's economic landscape. In Auckland's competitive corporate and tech sectors, redundancy processes are often complex, involving sophisticated employment agreements and potential restraint of trade issues. Wellington's public sector and policy environment present distinct considerations, often governed by specific collective agreements. In regions with dominant industries like agriculture or tourism, seasonal fluctuations can impact the genuineness of redundancy situations. Our national expertise allows us to navigate these regional nuances, ensuring advice is tailored not just to the law but to the local employment market dynamics. We provide consistent, high-level support for clients in major centres like Auckland and Wellington, as well as regional areas.
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Standards & Compliance
- Employment Relations Act 2000
- Holidays Act 2003
- Good Faith obligations under Part 1 of the ERA
- Relevant case law from the Employment Relations Authority and Court
Frequently Asked Questions
What is typically included in a severance pay calculation in New Zealand?
A severance calculation commonly includes payment for the notice period you are entitled to (contractual or statutory), any redundancy compensation outlined in your employment agreement, and payment for all accrued but untaken annual holidays. It may also include compensation for unjustified dismissal if applicable.
How long do I have to raise a personal grievance for unjustified dismissal?
You have 90 days from the date your employment ended, or from the date you became aware of the problem, to raise a personal grievance for unjustified dismissal. It is crucial to act promptly and seek legal advice well within this period to preserve your rights.
What is the role of mediation in a severance dispute?
Mediation through the Ministry of Business, Innovation and Employment (MBIE) is a confidential, without-prejudice process where a neutral mediator helps parties negotiate a settlement. It is often a required step before a case can proceed to the Employment Relations Authority and successfully resolves the majority of employment disputes.
How much does legal assistance with severance pay cost in New Zealand?
Legal costs depend on the complexity of your case, the number of issues involved, and whether it proceeds to mediation or authority proceedings. Many cases are resolved through targeted negotiation. We provide transparent fee structures and can often work on a fixed-fee basis for specific services like package review. The best approach is to request a specific proposal tailored to your situation.