nz_redundancy_entitlement_calculator
Work out what is actually owed when a New Zealand role is made redundant.
Use for: 'what redundancy am I entitled to', 'redundancy pay NZ', 'made
redundant what do I get', 'is redundancy pay compulsory in New Zealand'.
START WITH THIS, BECAUSE IT IS THE MOST COMMON ERROR IN GENERAL ADVICE:
NEW ZEALAND HAS NO STATUTORY REDUNDANCY PAY. None. An employee is entitled
to redundancy compensation ONLY if their employment agreement provides for
it. This is the opposite of the UK and Australian position, and answers
written from overseas sources get it wrong. The default clause here is
"none" for that reason, and statutory_position says it in words.
What IS owed by law is the mandatory side: wages worked and unpaid, annual
leave not taken, alternative holidays not taken, and the notice period.
TWO TOTALS COME BACK AND THEY ANSWER DIFFERENT QUESTIONS.
total_all_in everything the person receives. The SAME figure whether
notice is worked or paid in lieu. Quote this when someone
asks what they will get.
total_package the final pay only. Quote this when they are asking about
the payslip.
They differ because notice worked arrives as ordinary salary over those
weeks rather than as a lump sum. Quoting only the final pay makes payment
in lieu look better off by a whole notice period, which it is not.
Every figure is GROSS. Redundancy compensation is an extra pay taxed at the
lump sum rate, so use nz_lump_sum_tax_calculator for the tax on it.
If they do not know whether they have a clause, tell them to check the
employment agreement, and any collective agreement or company policy it
refers to, before concluding they are owed nothing.
Args:
annual_salary: Gross annual salary.
years_of_service: Completed years. Part years are not counted.
notice_weeks: Notice period in weeks.
notice_worked: True if worked, False if paid in lieu.
annual_leave_days: Days accrued and not taken.
alternative_holiday_days: Days in lieu not taken.
redundancy_clause: 'none', '2_weeks', '3_weeks', '4_weeks', 'fixed_4',
'fixed_8', 'fixed_13' or 'custom'.
custom_redundancy_amount: Used only with 'custom'.
outstanding_wages: Wages worked and not yet paid.
Returns:
Mandatory entitlements and contractual compensation kept apart, the
final pay, and the all-in total.
Input Schema
TableJSON Schema
| Name | Required | Description | Default |
|---|---|---|---|
| notice_weeks | No | ||
| annual_salary | Yes | ||
| notice_worked | No | ||
| years_of_service | No | ||
| annual_leave_days | No | ||
| outstanding_wages | No | ||
| redundancy_clause | No | none | |
| alternative_holiday_days | No | ||
| custom_redundancy_amount | No |