Made redundant in New Zealand: the first 30 days, step by step
Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). QuoteHub is a trading name.
There is no official government checklist for a New Zealand redundancy, but the order that avoids the most common mistakes is: confirm your final pay, apply for Jobseeker Support promptly since a stand-down clock starts running, then review your mortgage and any existing insurance (Employment New Zealand and Work and Income, retrieved 9 September 2026).
The first 30 days, in order
Each step below links to a dedicated guide in our losing your job in NZ cluster with the full detail, figures and sources, so this page focuses on the sequence and answers the practical question behind each step directly. If redundancy or income cover already sits behind your mortgage or your bills, see our redundancy insurance in NZ guide for what it actually pays and when.
This is the order that avoids the most common mistakes, and roughly which week each step usually falls in:
| Step | Usually done by | What it covers |
|---|---|---|
| Check your employment agreement and confirm notice | Day 1 | Whether a redundancy payment is owed, and your notice period |
| Confirm your final pay | Before or on your last day | Unused holidays, any redundancy payment, other entitlements |
| Apply for Jobseeker Support | Within the first week | Starts the stand-down clock running as early as possible |
| Contact your bank if the mortgage is a concern | Within the first 2 weeks | Hardship assistance options before any payment is missed |
| Check existing insurance and KiwiSaver | Within the first 30 days | What already covers you, and what your provider needs to know |
Source: Employment New Zealand and Work and Income guidance, retrieved 9 September 2026.
What should I check in my employment agreement first?
Whether it contains a redundancy pay clause, since New Zealand has no legal minimum redundancy payment and what you are owed depends entirely on what your agreement says (Employment New Zealand, Redundancy, retrieved 9 September 2026). See our redundancy pay in NZ guide for the full detail on what "entitled" means here and how any payment is taxed.
How is my notice period confirmed?
Your employment agreement sets it, or "reasonable notice" (generally 2 to 4 weeks) applies if the agreement is silent, and whether you work it, are paid in lieu, or go on garden leave changes exactly when your final pay lands (Employment New Zealand, Notice periods, retrieved 9 September 2026). See our notice periods in NZ guide for the full detail.
What should my final pay include?
Your final pay must include your final wages or salary, all unused annual holidays, any redundancy payment your agreement provides, and any other owed entitlements (Employment New Zealand, Redundancy, retrieved 9 September 2026). Check this table before assuming anything is missing:
| Item | Always owed | Only if your agreement provides it |
|---|---|---|
| Final wages or salary up to the last day | Yes | – |
| Unused annual holiday pay | Yes | – |
| Notice pay (worked, or paid in lieu) | Yes | – |
| A redundancy payment | – | Yes, only if the agreement says so |
Source: Employment New Zealand, Redundancy, retrieved 9 September 2026.
How is any redundancy payment taxed?
As a lump sum, at a flat rate between 10.5% and 39% depending on your total annualised income including the payment, rather than at your ordinary PAYE rate, and it is exempt from the ACC earners' levy and KiwiSaver deductions (Inland Revenue, Calculate PAYE for a lump sum payment, retrieved 9 September 2026). See our redundancy pay in NZ guide for the full rate table.
When should I apply for Jobseeker Support?
As early as you can once your employment has actually ended, since a stand-down of 1 or 2 weeks applies before payments start regardless, and delaying your application only delays when that clock finishes (Work and Income, Stand-down periods, retrieved 9 September 2026). See our Jobseeker Support in NZ guide for the rates and full eligibility rules.
When should I contact my bank about the mortgage?
As soon as you know repayments will be difficult, rather than waiting until you miss one, since the Credit Contracts and Consumer Finance Act 2003's hardship protections apply most cleanly before you are in default (Banking Ombudsman Scheme, Hardship and financial difficulty, retrieved 9 September 2026). See our mortgage holiday in NZ guide for what each of the five main banks offers.
What should I check about my existing insurance?
Whether any income protection, mortgage repayment, or redundancy cover you already held before this redundancy actually covers job loss, since most income protection cover is designed for illness and injury rather than redundancy, and only a small number of policies attach a genuine redundancy benefit to another cover. Our redundancy insurance in NZ guide names the insurers that still sell a redundancy benefit and what each pays.
What happens to my KiwiSaver when I'm made redundant?
Your employer's compulsory contributions stop as soon as your employment ends, and your own contributions stop too unless you keep contributing voluntarily; this is a one-line fact rather than advice, and any decision about your KiwiSaver account should be checked directly with your provider or on kiwisaver.govt.nz. A redundancy payment itself is exempt from KiwiSaver deductions (Inland Revenue, Lump sum payments, retrieved 9 September 2026).
Every guide in this cluster, at a glance
The table below lists every page in the losing your job cluster with the single figure it answers, so you can jump straight to the one you need.
| Guide | The figure it answers |
|---|---|
| Jobseeker Support in NZ | Up to $426.12 a week before tax for a single adult 25+ |
| Redundancy pay in NZ | No legal minimum; taxed at 10.5% to 39% |
| Notice periods in NZ | No legal minimum; 2 to 4 weeks reasonable notice if the agreement is silent |
| Mortgage holiday in NZ | All 5 main banks offer hardship help; interest still accrues |
(Each figure sourced and dated on its own guide; see the References section of this page and each linked guide.)
Common questions in the first 30 days
What are the 5 stages of redundancy?
New Zealand law does not define a fixed "five stages"; instead Employment New Zealand sets out a workplace change process an employer must follow: identifying the need for change, genuine consultation, considering redeployment, giving proper notice, and calculating final pay (Employment New Zealand, Redundancy, retrieved 9 September 2026). As the employee, your own practical steps are the numbered list above.
Is it better to resign or take redundancy?
Generally, accepting a genuine redundancy rather than resigning first protects your access to Jobseeker Support, since resigning voluntarily without good reason can trigger a non-entitlement period of up to 13 weeks, compared with the standard 1 or 2 week stand-down that follows a redundancy (Work and Income, Stand-down periods, retrieved 9 September 2026). Get independent advice before resigning ahead of an expected redundancy, since doing so can also forfeit any redundancy payment your agreement would otherwise have provided.
What are you entitled to when you are made redundant in NZ?
You are always entitled to proper notice, your final pay covering unused holidays and other owed entitlements, and a fair, genuine redundancy process; a redundancy payment on top of that depends entirely on your employment agreement (Employment New Zealand, Redundancy, retrieved 9 September 2026). See our redundancy pay guide for the full detail on what "entitled" actually means here.
Which company offers the best redundancy insurance in New Zealand?
This is the wrong question to start with after a redundancy has already happened, since redundancy cover has to be in place before your job ends and generally cannot be bought once notice is given. If you are asking for the future, our separate redundancy insurance in NZ guide names the insurers that still sell it and what each pays; for right now, check any income protection, mortgage repayment or redundancy cover you already held before this redundancy.
Where this fits with cover you already hold
QuoteHub's read is that the biggest mistake in the first 30 days is not the paperwork, it is assuming an existing policy will pay out for redundancy when most New Zealand income protection cover is designed for illness and injury rather than job loss, and only a small number of policies attach a genuine redundancy benefit to another cover. Check your own policy wording, or ask your adviser, before assuming either way.
This page is the practical index to our losing your job in NZ cluster. For income cover going forward, see our income protection insurance guide, income protection calculator, our income protection cost guide, our comparison of income protection insurance, our best income protection insurance in NZ comparison, our income protection tax guide and our page on whether you need income protection insurance. For a mortgage specifically, see mortgage repayment insurance, our mortgage protection guide and our mortgage protection calculator. If you're about to start a new role, our insurance when changing jobs guide covers what happens to any existing cover. Our how to compare insurance quotes in NZ page, methodology and how it works explain how we build the comparisons this cluster links to.
Financial advice is provided by Craig Smith Business Services Limited, trading as Smiths Insurance & KiwiSaver, a licensed Financial Advice Provider (FSP712931). QuoteHub is a trading name.
Adviser's view
What QuoteHub weighs when clients ask about the first month after redundancy is timing, not paperwork: the stand-down clock for a benefit only starts once you actually apply, so a person who tidies up final pay and insurance first before applying for Jobseeker Support loses weeks of eligibility they could have been serving concurrently, for no benefit at all.
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Cite this page QuoteHub NZ (2026). Made Redundant in NZ? The First 30 Days, Step by Step. www.quotehub.co.nz/guides/losing-your-job/made-redundant-first-30-days-nz. Updated 2026-09-09.
References
- Employment New Zealand: Redundancy
- Employment New Zealand: Notice periods
- Work and Income: Jobseeker Support
- Work and Income: Stand-down periods
- Inland Revenue: Calculate PAYE for a lump sum payment
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