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Social Security Act 2018

Enforcement: sanctions and offences - Sanctions for breach of obligations other than young person or young parent obligations - Procedure for imposing sanction

252: MSD must give notice of sanction

You could also call this:

"MSD must tell you in writing before changing your benefit"

Illustration for Social Security Act 2018

If you get a benefit, MSD must give you a written notice before they reduce, suspend, or cancel it. The notice must tell you what you did wrong and what will happen to your benefit. You have the right to dispute the decision, as stated under section 391. MSD must include certain information in the notice, such as the date when the reduction, suspension, or cancellation will take effect. The notice must also tell you that you have 5 working days to dispute the decision and how to do it. You can contact MSD to discuss the decision, and in some cases, MSD may impose a non-financial sanction instead of reducing your benefit. There are some exceptions, such as when a replacement sanction is imposed under section 236D, 236G, or 236J. In these cases, MSD does not need to give you a written notice. You should read the notice carefully and contact MSD if you have any questions or concerns about the decision.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6783658.

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"MSD must tell you in writing if they impose a non-financial sanction on you"

Part 5Enforcement: sanctions and offences
Sanctions for breach of obligations other than young person or young parent obligations: Procedure for imposing sanction

252MSD must give notice of sanction

  1. MSD must not under section 232 reduce the rate of, suspend, or cancel a benefit payable to a person (P) unless MSD has first given P a written notice for the purposes of this section (a section 252 notice) that complies with subsection (2).

  2. The notice must—

  3. state that P has failed to comply with a specified obligation under this Act; and
    1. specify the nature of P’s failure to comply; and
      1. either,—
        1. if P’s failure is a first or second failure and the specified obligation is not the work-test obligation to accept any offer of suitable employment (see section 144(b)), state that, on the basis of P’s failure, MSD will reduce the rate of P’s benefit or suspend P’s benefit unless P recomplies within 5 working days from the giving of the notice; or
          1. if P’s failure is a third failure or the specified obligation is the work-test obligation to accept any offer of suitable employment, state that, on the basis of P’s failure, MSD is cancelling P’s benefit; and
          2. specify the date on which the reduction, suspension, or cancellation is to take effect; and
            1. in the case of a reduction or suspension, state the nature and duration of the reduction or suspension; and
              1. state that P has 5 working days from the giving of the notice to dispute the reduction, suspension, or cancellation; and
                1. advise P to contact MSD if P wants to dispute or discuss the decision to reduce the rate of, suspend, or cancel the benefit; and
                  1. advise P that MSD may, instead of reducing the rate of the benefit, impose a non-financial sanction on P, but only if—
                    1. P is eligible for a non-financial sanction (see sections 236A(1), 236B(1), 236E(1), and 236H(1)); and
                      1. in the 5 working days from the giving of the notice, P discusses with MSD, in an appointment with MSD, P’s failure to comply; and
                      2. contain a clear statement of P's right, under section 391, to apply for a review of the decision, and of the procedure for applying for a review.

                        1. No section 252 notice is required for a replacement sanction imposed under section 236D, 236G, or 236J.

                        Compare
                        Notes
                        • Section 252(1): amended, on , by section 25(1) of the Social Security Amendment Act 2025 (2025 No 25).
                        • Section 252(2)(c): replaced, on , by section 25(2) of the Social Security Amendment Act 2025 (2025 No 25).
                        • Section 252(2)(g): amended, on , by section 25(3) of the Social Security Amendment Act 2025 (2025 No 25).
                        • Section 252(2)(ga): inserted, on , by section 25(4) of the Social Security Amendment Act 2025 (2025 No 25).
                        • Section 252(2)(ga)(i): amended, on , by section 25(5) of the Social Security Amendment Act 2025 (2025 No 25).
                        • Section 252(3): inserted, on , by section 25(6) of the Social Security Amendment Act 2025 (2025 No 25).
                        • Section 252(3): amended, on , by section 25(7) of the Social Security Amendment Act 2025 (2025 No 25).