What Are My Redeployment Rights When Facing Redundancy?
- Anne-Marie Dolan
- 4 days ago
- 7 min read
Change happens. Sometimes an organisation restructures. Sometimes roles are disestablished or no longer required. In those cases, an employee may face redundancy. But redundancy doesn’t mean your employer can simply terminate you. New Zealand law requires that redeployment must be seriously considered, and that proper process must be followed.
What is redeployment?
Redeployment is when, as an affected employee in a restructure, you are offered another position in the employer’s organisation, or sometimes within an associated entity, as an alternative to dismissal.
What are the legal obligations of the employer in NZ in relation to redeployment?
The Employment Relations Act 2000 (“ERA”) requires all parties in an employment relationship to deal with each other in good faith. When considering redundancies and restructures, this means the employer must be “active and constructive” in proposing changes, consulting staff, and maintaining the employment relationship where possible, such as through redeployment.
The legislation, and related case law, places the duty on the employer to seriously evaluate whether an affected employee could be redeployed, and to involve them in assessing that possibility. It also requires that, when a dismissal is justified for business reasons, the actions taken by the employer must be what a ’fair and reasonable employer’ could do in the circumstances. That standard is used to judge whether the employer’s redeployment assessment was reasonable. It is not enough for an employer to tick a box and say “no redeployment possible.” The employer must be able to justify their process and the reasons that no redeployment is available.
What is the employer’s obligation regarding redeployment opportunities?
When a role is to be disestablished, the employer must:
Identify all possible redeployment opportunities within the business (or group) that might fit the employee (or could with training),
Consult with the employee about those opportunities, share information, solicit feedback and understand the employee’s willingness to train, transfer, or accept different duties,
If a role is declined for redeployment, by the employer or employee, explain the reasons in a transparent way,
Document and justify the decisions in light of what would be “fair and reasonable,” and
Only when the employer has reasonably concluded there are no suitable redeployment opportunities, can they go ahead with making the employee redundant.
In some cases, redeployment may include roles that seem very different from the original job held by the affected employee. However, employees do not always have to accept every redeployment opportunity if the new role is too dissimilar. The default is that employers must at least offer and consider redeployment.
The employer should not hide possible roles or force the employee to find them entirely independently. The employer must identify and present them. If the employer is recruiting externally for a role that you might be suited for, it is not enough to simply include you among external applicants. Sometimes the law requires that you be offered the position (or at least given priority) if your skills align. Also, even if you previously declined or withdrew from a role, the employer may still need to revisit whether that role can now be redeployed to you.
In some judgements, failing to properly explore or offer a role that the employee could have done has led to findings of unjustified dismissal even when the restructure is found to be genuine.
What should the redeployment process look like?
Employers must give employees early notice of the possibility of their role being disestablished, adequate information about why the change is occurring, appropriate time to consider and respond, and a genuine opportunity to discuss alternatives, ask questions, identify roles, or suggest adjustments. Consultation should not be a token gesture after decisions are made. The employer must approach it with an open mind, ready to adjust proposals in light of feedback.
When considering options for redeployment, if multiple affected employees are competing for limited roles or redeployment options, the selection criteria for the roles should be transparent and applied in a fair and objective way.
If the employer fails to comply with these obligations, an employee may bring a personal grievance for unjustified dismissal.
How does my contract affect redeployment requirements?
Your Individual Employment Agreement or contract may include further or stricter provisions than the minimum legal requirements. Some typical clauses include requirements around redeployment opportunities, redundancy compensation and how this may be affected by redeployment, time frames of limits for redeployment consideration, specifications around relocation, travel and site changes, and the right for return if redeployment is not successful.
Because an individual employment agreement can grant more rights than the legislation, it is extremely important to review your contract carefully when redundancy is proposed.
Where does the employer's duty to redeploy end?
Redeployment is not an unlimited duty. An employer is not required to:
Offer roles that are manifestly inappropriate including those with totally irrelevant duties or huge differentials in remuneration,
Undermine essential employment rights such as if the new role would breach fundamental contractual or statutory rights,
Keep you in limbo indefinitely, or
Force you to accept a redeployment that is clearly unreasonable.
If, after reasonable steps and consultation, the employer reasonably concludes there is no suitable redeployment, then it may terminate the employment on the basis of redundancy with notice and recognising any contractual entitlements.
What is “reasonable” will often depend on the circumstances such as the size of the organisation, types of roles available, the employee’s skill set, the cost of training, location constraints etc. The employer must be able to show that a fair, reasonable employer in the same situation could have acted as they did.
If an employer fails to meet that test, a dismissal for redundancy may be held unjustified. That means you could bring a personal grievance, and possible remedies include compensation, reinstatement, or other monetary awards.
What should I do if my role is being made redundant?
As someone whose role is under threat, you should be ready to:
Ask for a written proposal for the restructure, including business reasons and options.
Request information about all roles currently vacant (or expected) that the employer is considering for redeployment.
Ask how the employer has/will assess your suitability (skills, experience, training) for redundancy and/or redeployment.
Express your willingness (or not) to train, relocate, accept changed duties.
Monitor whether the employer is giving you a genuine chance, or whether the process is fixed.
Check your employment contract to see whether it gives you any greater protection or rights (e.g. mandatory redeployment, redundancy formula).
Get legal advice if you believe the employer is not acting fairly.
If in doubt, you have 90 days after termination (or when you knew of termination) to bring a personal grievance.
Frequently Asked Questions (FAQs)
Must I accept a redeployment offer? It depends. If your employment agreement allows or requires acceptance of redeployment within reason, rejecting a suitable role may forfeit your entitlement to redundancy. If no such clause exists, you can consider whether the redeployment is reasonable in terms of duties, pay, location. If it's too dissimilar or less favourable, you may refuse but you should seek legal advice and argue your case.
What if the proposed redeployment role has lower pay or fewer hours?That may still be offered, potentially with a transitional arrangement or “equalisation” provision if your contract allows it. But the employer must explain and justify it and show it’s reasonable. The contract might require that you not be unreasonably disadvantaged.
Does redeployment only apply within the same department or site?No. Redeployment may include transfer to other branches, departments or locations of the employer (or group), subject to what is reasonable and permitted by your agreement.
Who decides whether I’m suitable for a role?The employer must assess suitability in consultation with you considering your skills, experience, willingness to train, and other factors. The decision should not be made unilaterally behind the scenes.
What if I’m not selected (or refuse) a redeployment opportunity?If you are not selected or you decline, the employer should explain why and ensure the decision was justifiable. If there are genuinely no other roles you could do then redundancy becomes lawful.
Can I bring a personal grievance if I think redeployment was handled badly?Yes. If the employer did not genuinely explore redeployment or failed proper consultation, you may claim unjustified dismissal by arguing the redundancy was not fair in process or substance.
What timeframe applies to resolving redeployment and redundancy?There is no fixed statutory timeframe. But the consultation and decision-making process must be reasonable, and the employer often should allow a redeployment window before confirming termination. The IEA may specify a timeframe. Taking too long or rushing may undermine fairness.
If your employer disestablishes your role as part of a restructure, that doesn’t mean you are automatically out the door. New Zealand law imposes a serious duty on the employer to explore and offer redeployment before redundancy. The process must be done in good faith, include real consultation, and be justifiable in both reason and outcome. Your Individual Employment Agreement may strengthen those protections by requiring mandatory redeployment, redundancy pay, or transitional support. Knowing your contract’s terms matters. If you feel your employer is bypassing their duty by not telling you about a role, making a decision behind closed doors, or not giving you a real chance to propose or comment, you may have grounds for a personal grievance.
If you are facing a restructure and your role is being disestablished, it is a good idea to do your research and make yourself aware of your rights during this time. An employment advocate can help to navigate this often stressful process and ensure your rights are protected. Call Mathews Walker today for a free consultation with an employment advocate. MathewsWalker.co.nz | 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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