HR Practice For Payroll Practitioners

HR Practice for Payroll Practitioners

Employee made redundant while on parental leave

If an employee is made redundant while on parental leave (i.e., it is not the person but the position that is no longer needed), any agreed redundancy payment would still be payable even though the employee is on parental leave at the time of redundancy.

Example: Employee made redundant while on parental leave

Linda has been on parental leave for 26 of the 52 weeks extended leave she was entitled to take. The company contacts her about a possible redundancy situation, and after the process is completed, Linda’s position with the company is made redundant.

Extended leave (52 weeks)

Termination Date

The termination date for the employee happens during the parental leave period and the employee will get their notice period and redundancy compensation (if provided for in the employment agreement). Section 53 Redundancy payments not affected Nothing in this Act shall affect any redundancy payment payable pursuant to the provisions of any Act or of any order or employment agreement.

© New Zealand Payroll Practitioners Association, Sep 2024, Ver 12

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