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Process
Each listed firm's approach begins with a detailed analysis of your employment agreement, the circumstances of the dismissal, and your employment history. We assess eligibility against the Employment Relations Act 2000 and relevant case law to determine if you are owed severance pay for unjustified dismissal or a different termination payment. A key procedural step is calculating any redundancy compensation, which is not mandated by law but is often negotiated; typical entitlements can range from 2 to 8 weeks' pay per year of service, depending on the employer's policy. We then guide you through the options, which may include direct negotiation, mediation through MBIE, or pursuing a personal grievance claim. For a deeper understanding of your potential entitlement, refer to our guide on How Is Severance Pay Calculated.
At a Glance
| Parameter | Reference Value |
|---|---|
| Typical Personal Grievance Filing Deadline | 90 days from dismissal |
| Common Severance Negotiation Range | 4-26 weeks' salary |
| Standard Mediation Process Duration | 4-8 weeks |
| Key Assessment Factor | Length of service & reason for dismissal |
Local Considerations — New Zealand
The application of employment law principles is consistent nationwide under the Employment Relations Act 2000. However, local economic factors and industry practices can influence outcomes. In major commercial centres like Auckland and Wellington, where corporate and tech sectors dominate, severance packages may be more standardized. In contrast, regional areas with different industry bases may see more variation in termination practices. Our legal team is structured to provide the same high-calibre advice across all regions, from Christchurch to Hamilton, ensuring local context informs our national expertise. Understanding regional employment trends is crucial, as highlighted in our resource for navigating challenges in What To Do When You Get Fired.
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Standards & Compliance
- Employment Relations Act 2000
- Holidays Act 2003
- Good Faith obligations under Part 1, ERA 2000
- Case law precedents from the Employment Court
Frequently Asked Questions
What is the legal difference between severance pay and termination pay?
Severance pay is compensation specifically for unjustified dismissal or redundancy where it constitutes an unfair practice. Termination pay is a broader term that can include wages in lieu of notice or any agreed sum upon ending employment, which may be less than full severance entitlement.
How long do I have to raise a personal grievance for unjustified dismissal?
You have 90 days from the date the dismissal action occurred, or came to your attention, to raise a personal grievance with your employer. This strict deadline is critical for preserving your right to claim remedies.
Can I negotiate severance if I am made redundant?
Yes. While there is no statutory redundancy compensation in New Zealand, many employers have policies. You can negotiate based on your length of service, the company's financial position, and the consultation process followed, often with reference to industry standards.
How much does legal advice on Severance Vs Termination Pay cost in New Zealand?
Legal costs depend on case complexity, required negotiation or mediation, and documentation review. For straightforward advice on entitlements, each listed firm provides fixed-fee initial consultations. Comprehensive representation ranges accordingly, and we provide a specific quote after assessing your situation.