If you've been made redundant in Marlborough, your employer must have followed a fair and reasonable process under the Employment Relations Act 2000. That means a genuine business reason for the restructure, meaningful consultation with you before any final decision, and genuine consideration of redeployment. If the process was unfair, you may have a personal grievance for unjustified dismissal — and you have 90 days from the date of your dismissal to raise it.
Redundancy in Marlborough — Why It Matters Locally
Marlborough's economy is more concentrated than most regions in New Zealand. Wine, viticulture, aquaculture, tourism, and agriculture employ a significant share of the workforce, and many businesses in Blenheim and the wider region are small to medium enterprises with fewer than 20 staff. That concentration means redundancies can have an outsized impact — losing a role in a region with fewer alternative employers is a very different experience to losing one in Wellington or Auckland.
Seasonal fluctuations in the wine and tourism industries also mean that restructures and role changes are more common in Marlborough than in many other parts of New Zealand. Whether your role is being disestablished due to a genuine downturn, a business restructure following a change of ownership, or the automation of tasks in a vineyard or production operation, your rights under New Zealand employment law are the same regardless of where you live or what industry you work in.
What Must My Employer Do Before Making Me Redundant?
The Employment Relations Act 2000 requires every employer to act in good faith in all aspects of the employment relationship. Section 4 of the Act imposes a duty of good faith that is particularly important during restructuring. This means your employer must:
- Have a genuine business reason for the restructure. The decision to disestablish a role must be based on real operational, financial, or structural needs — not used as a way to remove a particular employee.
- Consult with you before making a final decision. This is not a formality. Consultation must be genuine and meaningful — your employer must provide you with relevant information, give you a reasonable opportunity to respond, and genuinely consider your feedback before deciding. The leading case, Jinkinson v Oceana Gold (New Zealand) Ltd [2010], confirmed that consultation must occur while the proposal is still genuinely open.
- Consider redeployment options. If there are other suitable roles available within the organisation, your employer should offer those to you before confirming the redundancy.
- Follow any redundancy provisions in your employment agreement. If your agreement specifies redundancy compensation, notice periods, or a particular process, those terms must be honoured.
What Is the Test for Whether a Redundancy Was Fair?
Section 103A of the Employment Relations Act 2000 sets out the test for justification. The question is whether the employer's actions, and how the employer acted, were what a fair and reasonable employer could have done in all the circumstances at the time the dismissal occurred.
This is an objective test — it does not matter what the employer intended. What matters is whether the process they followed was one that a fair and reasonable employer could have followed. The Employment Relations Authority and the Employment Court have consistently held that even where there is a genuine business need for redundancy, an unfair process makes the dismissal unjustified.
"In a smaller community like Blenheim, a redundancy can feel very personal — especially when you've worked for the same employer for years and know everyone involved. But the law is clear: no matter the size of the business or how well you know your employer, they must follow a proper process. In my experience, many Marlborough employers do want to get it right, but they don't always know exactly what a fair process requires. That's where early legal advice helps — for both sides."
— Sarah Wadworth, Special Counsel, Lane Neave
What Compensation Am I Entitled To?
New Zealand has no general statutory entitlement to redundancy compensation. Whether you receive a redundancy payment depends on what your employment agreement says. Some agreements include redundancy clauses that provide for a specified payment (often calculated as a number of weeks' pay per year of service), while many do not include any redundancy payment at all.
However, if your employer has failed to follow a fair process, you may have a personal grievance for unjustified dismissal. The remedies available through the Employment Relations Authority or Employment Court include:
- Lost wages — reimbursement of wages you would have earned, commonly covering three to six months depending on the circumstances
- Compensation for hurt and humiliation — typically between $5,000 and $25,000, depending on the severity of the employer's conduct and the impact on you
- Costs — contribution to your legal costs in some cases
- Reinstatement — in some cases, the Authority or Court can order that you be returned to your role, although this is less common in genuine redundancy situations
How Long Do I Have to Challenge a Redundancy?
Under section 114 of the Employment Relations Act 2000, you must raise a personal grievance with your employer within 90 days of the date of dismissal. This deadline is strict. If you miss it, you will need to apply to the Employment Relations Authority for an extension of time — and extensions are only granted where the delay was not unreasonable and the employer will not be unfairly prejudiced.
The 90-day period begins from the date your employment actually ends — not from the date you were told about the redundancy. If you are given four weeks' notice, the 90 days runs from the end of that notice period.
What About Small Businesses in Marlborough?
Many businesses in Blenheim and the wider Marlborough region are small employers. It is a common misconception that small businesses have different or lower obligations when it comes to redundancy. They do not. The Employment Relations Act 2000 applies equally to all employers regardless of size.
However, the test under section 103A does account for the resources available to the employer. What a fair and reasonable employer "could have done" is assessed in light of the employer's size and resources. A large national company may be expected to explore redeployment across multiple offices, while a vineyard with 10 staff may have fewer redeployment options — but they still must consult genuinely and follow a proper process.
What Should You Do if You've Been Made Redundant?
- Act quickly. You have 90 days from the date of dismissal to raise a personal grievance. The sooner you get advice, the more options you have.
- Gather your documents. Collect your employment agreement, the restructure proposal, any correspondence (emails, letters, texts), and notes about meetings and conversations. These are essential evidence.
- Don't sign a settlement under pressure. If your employer is asking you to sign a record of settlement or a release, get independent legal advice first. Once you sign, your rights may be extinguished.
- Check your employment agreement for redundancy provisions. Some agreements include redundancy compensation, enhanced notice periods, or specific consultation processes. Make sure your employer has honoured those terms.
- Book a free consultation. Sarah offers a complimentary 30-minute consultation to discuss your redundancy, assess whether the process was fair, and explain your options — no obligation.
Frequently Asked Questions
Can my employer make me redundant and then hire someone else for the same job?
If your employer disestablishes your role and then hires someone else to perform essentially the same work, the redundancy is unlikely to be genuine. This is a strong indicator that the restructure was a sham — and you may have a personal grievance for unjustified dismissal. The Employment Relations Authority has consistently scrutinised situations where a role is "disestablished" on paper but continues in substance.
Am I entitled to redundancy pay in New Zealand?
There is no general statutory right to redundancy pay in New Zealand. Your entitlement depends on what your employment agreement provides. Some agreements include redundancy compensation clauses, while many do not. If you have been unfairly made redundant, however, you may be entitled to remedies through a personal grievance claim — including lost wages and compensation for hurt and humiliation.
What happens at MBIE mediation for a redundancy dispute?
MBIE mediation is a confidential, voluntary process where a mediator helps you and your employer try to reach a settlement. It is the most common way employment disputes are resolved in New Zealand. Sarah regularly represents clients at MBIE mediations and can attend in person in Blenheim or by video link for clients anywhere in the country. Most redundancy disputes are resolved at mediation without needing to go to the Employment Relations Authority.
Can I be made redundant while on sick leave or parental leave?
Your employer cannot make you redundant because you are on sick leave or parental leave. However, a genuine restructure that affects your role may proceed while you are on leave — provided the employer follows a fair process and the redundancy is genuinely unrelated to your leave. If the timing seems suspicious, it is worth getting legal advice to assess whether the process was genuinely fair.
Do I need to accept a lower-paid role as redeployment?
You are not obligated to accept a redeployment role that is significantly different from your current position in terms of pay, seniority, or responsibilities. However, unreasonably refusing a comparable role may affect your ability to claim remedies later. Each situation is assessed on its own facts — the key question is whether the alternative role was genuinely suitable.
