Restructured

How to Communicate a Redundancy to Affected Employees in New Zealand

What to say, when to say it, and what not to say when communicating a redundancy to employees under the NZ Employment Relations Act 2000. Practical scripts and timing guidance.

The moment an HR lead tells an employee their role is at risk of redundancy is one of the hardest in any restructure. Get the communication wrong — timing, content, tone, or sequence — and the legal consequences under the ERA 2000 can outlast the restructure itself. Employees who feel blindsided, misled, or disrespected are far more likely to raise personal grievances. And the Employment Relations Authority will look closely at what you said, what you wrote, and when. This post covers what to say, when to say it, and what not to say at each stage of a redundancy communication, with practical scripts you can adapt.

Why Communication Is a Legal Obligation, Not Just Good Practice

Under the ERA 2000, the duty of good faith applies not just to the process of consultation but to how and when you communicate that process. Section 4 of the ERA 2000 requires parties to be active and constructive in maintaining productive employment relationships, to be responsive and communicative about information relevant to the employment relationship, and not to act in a misleading or deceptive manner.

Communication failures are among the most common causes of personal grievance claims arising from restructures. The Employment Relations Authority looks at:

  • Whether employees received timely individual notification

  • Whether they understood the process and their rights
  • Whether they had a meaningful opportunity to engage with the proposal

    • The three most common communication failures are:

  • Group announcements before individual notification
  • Final decisions communicated before feedback is received
  • No written record of what was communicated and when

    • Each of these failures can independently support a finding that the employer did not act in good faith, even if the underlying business rationale for the restructure was sound.

    Step 1: Individual Notification Before Any Public Announcement

    The sequence matters. Every affected employee must be told individually that their position is at risk before any wider communication goes out. This includes board announcements, all-staff emails, media statements, and any communication that could reach the affected employee before they have been personally notified.

    What to say in the initial notification meeting:

    The purpose of this meeting is to tell the employee their position has been identified as potentially at risk, explain that no decision has been made, and outline what will happen next. It is not the place to consult. That comes with the written proposal.

    A practical script to open the meeting:

    > "I want to meet with you today because we are undertaking a review of the [business unit/team] structure. As part of this review, your position has been identified as potentially at risk. No decision has been made. I want to explain the proposal and give you the opportunity to provide feedback before any decision is made."

    What not to say:

  • Do not say the role is being eliminated. You are proposing a change, not confirming one.
  • Do not apologise for the decision. There is no decision yet, and apologising implies one has been made.
  • Do not guarantee alternative roles. Unless you have already confirmed a redeployment option, mentioning it may create an expectation you cannot fulfil.
  • Do not indicate the outcome is certain. Language like "we've had to make some tough calls" or "unfortunately this is where we've landed" signals a predetermined outcome.

    • After the meeting:

    Give the employee a written summary of what was discussed, confirm the next steps, and provide the consultation proposal at the same time or within a day. Do not let time pass between the verbal notification and the written proposal.

    Step 2: Providing the Consultation Proposal

    The written consultation proposal is not optional. It is what makes the consultation meaningful under the ERA 2000. Without it, employees cannot meaningfully engage with the proposed change.

    The proposal must include:

  • The proposed structural change and what it involves
  • The business rationale for the change (this must be genuine and specific, not generic)
  • Which roles are affected and how
  • The proposed consultation timeline, including when feedback is due
  • How the employee can provide feedback (written submission, meeting, or both)
  • Confirmation that no decision has been made

    • Timing:

    The proposal must be provided at the start of the consultation period, not part-way through. Giving an employee the proposal and asking for feedback the same day does not constitute genuine consultation. Common practice for individual role redundancies is a minimum of 10 to 15 working days. More complex restructures affecting multiple roles, or where collective agreement provisions apply, warrant longer periods.

    What not to include:

    Do not include language that suggests the outcome is already determined. Phrases like "as part of our restructure" (implying a decision already made), or "your final day will be" (skipping consultation entirely), are red flags the ERA will note.

    Step 3: Running the Consultation Meeting

    The consultation meeting is for the employee to ask questions, understand the proposal, and share their views. It is not for you to announce or justify the decision. Many HR leads inadvertently tip into justification mode during consultation meetings, which signals the outcome is already settled.

    Employee rights in the consultation meeting:

  • The right to bring a support person or union representative
  • The right to time to prepare (do not schedule the meeting the same day the proposal is issued)
  • The right to ask questions and receive genuine answers

    • What the HR lead should do:

  • Listen. Take notes. Ask open questions about the employee's feedback.
  • If the employee raises an alternative they believe should be considered, record it and confirm it will be considered before any decision is made.
  • Do not promise outcomes, but do confirm that feedback will be taken seriously.

    • A practical script to open the consultation meeting:

    > "I'm here today to talk through the consultation proposal I sent you. I want to make sure you understand what is being proposed, and I want to hear your thoughts. Nothing has been decided. Would you like to start with any questions about the proposal, or tell me what you think about it?"

    What not to do:

  • Do not defend or justify the decision. It has not been made.
  • Do not suggest the outcome is inevitable, even if you believe it is.
  • Do not discuss redundancy entitlements, notice periods, or final pay as if the decision is already made. Doing so signals a predetermined outcome.

    • Step 4: Receiving and Documenting Feedback

    After the consultation meeting, give the employee the opportunity to provide written feedback in addition to anything discussed verbally. Even if feedback was given in the meeting, follow up with a written summary for the employee to confirm or add to.

    Document every point of feedback. This includes:

  • Concerns about the business rationale
  • Alternatives the employee has proposed (restructuring a different way, redeployment options they are aware of, changes to their own role)
  • Any factual corrections to the proposal
  • Anything the employee believes was not considered

    • The obligation to genuinely consider feedback:

    This is where many ERA cases turn. Documenting that you received feedback is necessary but not sufficient. You must demonstrate that you considered it. ERA decisions consistently hold that a failure to engage with material feedback is evidence the decision was pre-determined.

    In practice this means your provisional decision letter must address each substantive point raised, explain what you did with it, and, if you have not changed your position, explain why.

    Timing:

    The consultation period must close before the provisional decision is made. Never communicate a provisional decision on the same day as the consultation meeting closes, and never communicate it before you have received and documented all feedback from all affected employees.

    Step 5: Communicating the Provisional Decision

    A provisional decision is the outcome after consultation but before the final decision. It gives employees one more opportunity to respond before the decision becomes final.

    What a provisional decision letter must contain:

  • A reference to the consultation proposal and the consultation period
  • A summary of the feedback received from the employee
  • How each material point of feedback was addressed, including any changes made to the proposal as a result
  • The provisional outcome (for example, that the proposed disestablishment of the role is confirmed provisionally)
  • What happens next: the employee's right to respond to the provisional decision, the timeframe for doing so, and that no final decision will be made until that response period has closed

    • The distinction between provisional and final:

    Employees must have a genuine opportunity to respond to the provisional decision. Allow at least 3 to 5 working days. If an employee raises new information in response to the provisional decision, you must consider it before issuing the final decision.

    What not to say:

    Do not write "This is our final decision" in a provisional decision letter. Even if you are confident the outcome will not change, describing the provisional decision as final removes the employee's right to respond, which is itself a good faith breach.

    Step 6: Communicating the Final Decision

    The final decision letter is issued after the provisional response period has closed and any further feedback has been considered.

    What the final decision letter must contain:

  • A reference to the provisional decision letter and the response period
  • If the employee responded to the provisional decision: how that feedback was considered and what (if anything) changed as a result
  • If the employee did not respond: a note that no response was received
  • Confirmation of the final outcome
  • Notice period and the last day of employment (in accordance with the employment agreement)
  • Redundancy entitlements if applicable under the employment agreement or any applicable policy
  • The employee's rights under section 114 of the ERA 2000, which sets out the timeframe for raising a personal grievance (90 days from the date of dismissal or from the date the employee became aware of the action giving rise to the grievance)

    • Delivery:

    Deliver the final decision in person where possible, then confirm in writing the same day. Do not send a final decision letter without a prior in-person or phone conversation. Receiving a redundancy by email with no prior discussion is a significant contributor to personal grievance claims.

    At the end of the notice period:

    Confirm the last day, any outstanding leave entitlements, and the process for return of company property. Send a written confirmation of the final pay calculation and any redundancy compensation, citing the employment agreement or policy the calculation is based on.

    What Restructured Generates

    Restructured generates all of these letters — the consultation proposal, the provisional decision letter, and the final decision letter — with ERA-compliant language built in. The platform tracks which employees have received each communication, records consultation responses, and maintains an audit trail for each stage of the process. See the full restructure workflow to understand how each communication stage fits together.

    *This article provides general information about New Zealand employment law and does not constitute legal advice. Employment law is fact-specific. If you are managing a redundancy, consult a qualified NZ employment lawyer. Employment NZ also provides free guidance for employers and employees.*