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Redundancy Agreement Template for New Zealand

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Key Requirements PROMPT example:

Redundancy Agreement

"I need a standard Redundancy Agreement under New Zealand law for a senior software developer whose position is being eliminated due to technological changes, with the redundancy to take effect from March 15, 2025."

Document background
The Redundancy Agreement is a crucial document used in New Zealand when an employer needs to terminate employment due to a position becoming surplus to business requirements. It is typically implemented following a period of consultation and is essential for ensuring compliance with New Zealand employment law, particularly the Employment Relations Act 2000. This document formalizes the redundancy process, outlining all financial entitlements, including final pay, holiday pay, and redundancy compensation, while also addressing practical matters such as the return of company property and ongoing obligations. The agreement serves as a full and final settlement of all matters relating to the employment and redundancy, providing legal protection for both parties. It should be used whenever a genuine redundancy situation arises and should reflect any relevant provisions from existing employment agreements or workplace policies.
Suggested Sections

1. Parties: Identifies the employer and employee who are parties to the agreement

2. Background: Outlines the context of the redundancy situation and confirms the consultation process that has occurred

3. Definitions: Defines key terms used throughout the agreement

4. Confirmation of Redundancy: Formally confirms the position is redundant and states the effective termination date

5. Final Pay and Entitlements: Details the calculation and payment of final salary, holiday pay, and other statutory entitlements

6. Redundancy Compensation: Specifies the redundancy payment amount and calculation method

7. Payment Timing: States when and how all payments will be made

8. Return of Company Property: Lists company property to be returned and the process for return

9. Confidentiality: Confirms ongoing confidentiality obligations post-employment

10. Tax Treatment: Explains the tax treatment of various payment components

11. Full and Final Settlement: Confirms the agreement represents full and final settlement of all claims

12. Execution: Signature block and date of agreement

Optional Sections

1. Outplacement Support: Details any career transition or outplacement support being provided

2. Reference Provision: Includes when the employer agrees to provide a reference

3. Post-Employment Restrictions: Used when existing restraint of trade or non-compete clauses remain in effect

4. Garden Leave: Included when the employee will be paid but not required to work during notice period

5. Transfer of Long Service Benefits: Used when there's an agreement to transfer or recognize service with a new employer

6. Employee Assistance Program: Details any continued access to EAP services post-employment

7. Redeployment Provisions: Included when there's potential for redeployment within related companies

Suggested Schedules

1. Schedule 1 - Payment Calculations: Detailed breakdown of all payment components including base salary, holiday pay, and redundancy compensation

2. Schedule 2 - Company Property Register: Itemized list of company property to be returned

3. Schedule 3 - Outplacement Services: Details of outplacement support package and service provider

4. Appendix A - Statutory Declaration: Employee declaration confirming return of company property and compliance with obligations

5. Appendix B - Reference Letter: Standard form reference letter if agreed to be provided

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Relevant Industries

Technology

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Relevant Teams

Human Resources

Legal

Finance

Payroll

Corporate Services

Risk and Compliance

Employee Relations

Executive Leadership

People and Culture

Relevant Roles

Chief Executive Officer

Human Resources Director

Legal Counsel

Finance Director

Operations Manager

Department Head

Line Manager

HR Business Partner

Employment Relations Specialist

Payroll Manager

Recruitment Manager

Corporate Services Manager

Risk and Compliance Manager

Employee Relations Manager

Industries







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Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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