Working for an Australian company: What are my rights if I'm made redundant?
Your employer’s head office is in Australia. Then an email arrives saying the New Zealand branch is closing and everyone’s job is going. Who protects your rights? Do you get an Australian redundancy payout? Can the company tell you to move overseas or leave?
These are fair questions, especially when your income is at risk. Working for an international company can make redundancy feel confusing. But overseas ownership does not mean your employer can ignore its obligations here.
Do New Zealand or Australian rules apply?
If you were hired in New Zealand to work in New Zealand, New Zealand employment law will generally apply. Having an Australian manager, payroll team or head office does not automatically change that.
Australian ownership also does not automatically give you Australian redundancy entitlements.
However, the answer needs a closer look if you were hired in Australia and transferred here, work across both countries, or have overseas terms in your agreement. Australian law can cover some employees working overseas. You cannot simply choose whichever country offers the biggest payout.
A clause saying Australian law applies is a reason to get advice. It should not be treated as proof that New Zealand protections disappear.
Start by checking who employs you. Your employer might be the Australian company operating through a New Zealand branch. Or it could be a separate New Zealand company owned by the Australian business.
That distinction matters when identifying who owes your pay and must respond to an employment complaint. A branch is part of the overseas company; a subsidiary is a separate legal entity. An Australian parent does not automatically owe every debt of its New Zealand subsidiary. Check the legal name in your employment agreement, along with any transfer letters or later changes. If you are unsure, seek advice to clarify your employment status and rights.
Can an Australian company close its New Zealand branch?
A company can have genuine business reasons for closing its New Zealand operation, such as reducing costs or changing how it serves customers. However, for employees covered by ordinary dismissal protections, a genuine reason does not remove the need for a fair process.
Your employer should explain the proposal, provide relevant supporting information, give you reasonable time to respond and genuinely consider your feedback before making the decision affecting your employment.
A unilateral decision by your Australian employer should not be used to shut down meaningful consultation. Ask what remains open for discussion, including alternatives, timing and redeployment. Consultation does not give employees a veto, but it must be more than a box-ticking exercise.
Will I receive redundancy compensation?
New Zealand has no general statutory redundancy payout. Your entitlement may come from your employment agreement, an applicable workplace policy or a separate agreement with your employer. Check your individual or collective agreement, redundancy policies and any promises made when you joined or transferred. A global policy may provide extra benefits, but its wording and whether it applies to you matter. For example, if your agreement promises six weeks’ redundancy compensation, the company cannot simply dismiss that promise because it is leaving New Zealand.
Australian colleagues may receive different payments under Australian rules. That difference alone does not mean you receive the same package. You can still ask your employer to negotiate an additional payment.
What notice must my employer give?
Your employer must generally give the notice required by your agreement. Check for a specific redundancy notice clause. If no notice period is stated, reasonable notice is required; there is no single period that fits every job.
Consultation and notice are different. Being told your role might disappear is not necessarily notice that your employment is ending.
If the company wants you to finish immediately, check whether payment instead of working notice is authorised by your agreement or agreed with you. Notice pay and redundancy compensation are separate entitlements. Ask for an itemised final-pay calculation covering wages, holiday pay and other amounts owed. If you are unsure if your final pay is correct, seek advice.
Does my employer have to consider me for redeployment, including in Australia?
Your employer must consider suitable alternative roles for redeployment before redundancy. This can include different roles, reasonable retraining and vacancies at other locations. Ask about remaining New Zealand roles, remote work and overseas vacancies you would consider.
The employer’s identity matters here too. A vacancy with the same employer overseas may require different consideration from one with a separate company in the group. There is no automatic right to any job across a multinational business. The agreement, policies, company structure and practical options need checking.
An employer does not generally have to create a position for you. However, it should genuinely examine available options rather than assume a branch closure ends the discussion.
Do I have to move to Australia?
An Australian job offer does not automatically mean you must relocate or lose your redundancy payment. Check your place-of-work, mobility and redeployment clauses. Consider the location, pay, duties, moving costs, family needs and whether your service would continue to count.
Some agreements restrict redundancy compensation if suitable alternative work is offered and refused. Whether an overseas role meets that test depends on the wording and circumstances. Get advice before accepting or rejecting it.
What should I do now?
Keep copies of your agreement, policies, proposal, emails and meeting notes. Ask for written details of the reasons, alternatives, vacancies, proposed end date and payments.
Get advice before resigning or signing a settlement. If the redundancy is unjustified, you may be able to raise a personal grievance. This normally needs to be raised with your employer within 90 days of the dismissal or relevant issue.
At Mathews Walker, we help employees understand their rights and challenge unfair treatment. If your international employer is closing its New Zealand operation, contact us for a free consultation. Our employment advocates work on a no win, no fee basis and will help ensure your rights are protected.
MathewsWalker.co.nz | Employment Problems Solved | 0800 612 355
Disclaimer: The information provided in this blog is for general informational purposes only and should not be considered legal advice. While we strive to keep the information accurate and up to date, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained on the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. For specific legal advice tailored to your situation, please contact a qualified legal professional.
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