Employment Relations Act 2000

Continuity of employment if employees' work affected by restructuring - Specified categories of employees

69N: Employee who transfers may bargain for redundancy entitlements with new employer

You could also call this:

“If you choose to work for a new company, you can ask for money if they want to let you go because of the change.”

If you choose to work for a new employer when your job is affected by restructuring, you might be able to get redundancy pay if the new employer decides to make you redundant because of the transfer. This applies if your work agreement doesn’t already cover redundancy pay for this situation or doesn’t specifically say you can’t get it.

If this happens to you, you have the right to get redundancy pay from your new employer. You and your new employer need to talk about what kind of redundancy pay is fair. You should both try your best to agree on what you’ll get.

Remember, this only applies if you choose to transfer to the new employer under section 69I(1) of this law. It’s important to know your rights when your job changes because of restructuring.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM59651.

Topics:
Work and jobs > Worker rights
Business > Industry rules

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69M: New employer becomes party to collective agreement that binds employee electing to transfer, or

“When a worker changes jobs, their new boss has to follow the old work agreement, but only for that worker.”


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69O: Authority may investigate bargaining and determine redundancy entitlements, or

“The law says a special group can help decide what workers get if they lose their job because of big changes at work.”

Part 6A Continuity of employment if employees' work affected by restructuring
Specified categories of employees

69NEmployee who transfers may bargain for redundancy entitlements with new employer

  1. This section applies to an employee if—

  2. the employee elects, under section 69I(1), to transfer to a new employer; and
    1. the new employer proposes to make the employee redundant for reasons relating to the transfer of the employees or to the circumstances arising from the transfer of the employees; and
      1. the employee's employment agreement—
        1. does not provide for redundancy entitlements for those reasons or in those circumstances; or
          1. does not expressly exclude redundancy entitlements for those reasons or in those circumstances.
          2. The employee is entitled to redundancy entitlements from his or her new employer.

          3. If an employee seeks redundancy entitlements from his or her new employer, the employee and new employer must bargain with a view to reaching agreement on appropriate redundancy entitlements.

          Notes
          • Section 69N: substituted, on , by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).