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Casual, fixed-term, part-time or on a trial period: do redundancy rules apply to you?

8 minute readYour rights

In short

Part-time and permanent staff have the same redundancy rights. A fixed-term job that ends on its agreed date is not a redundancy, but only if the reason for fixing the term was genuine. Casuals can be let go without a fair process, but 'casual' on paper doesn't count if you actually work regular hours. On a valid 90-day trial you can usually be dismissed without a grievance, but notice and good faith still apply.

Part-time workers

Part-time employees have the same rights as full-time employees: the same workplace change process, selection fairness, notice, and any redundancy entitlement in your agreement (often calculated pro rata). Having low hours is not a reason to skip the process. If your hours are being cut, that's a change to your terms: your employer needs your agreement or a proper consultation.

Fixed-term: end of term versus redundancy

A fixed-term agreement can end on a date, event or project completion. Employment NZ says there must be genuine reasons based on reasonable grounds, the employer must explain when and how employment will end and why, and the agreement must record it in writing. Genuine reasons include covering parental leave, seasonal work or a one-off project. Not genuine, according to Employment NZ: the employee is on a temporary visa, the work is ongoing, poor performance, or the employer thinks there may not be enough work later. A fixed term can't be used as a substitute for a trial period.

SituationWhat it usually means
Term ends as agreed, reason was genuine and recordedNot a redundancy; no process or compensation is owed unless your agreement says so. Unused leave and final pay are still owed.
Employer ends it early because the role is no longer neededThat is a redundancy. Fair process, notice and any redundancy terms apply, unless the agreement says otherwise.
Repeatedly renewed, or no genuine reason recordedYou may be a permanent employee. Community Law notes repeated rollovers make this more likely. Then ending it is a dismissal.

Casual workers

Truly casual workers have no guaranteed hours; each shift is a separate engagement. In that case there's usually no redundancy process, but you may still have rights if your pattern is regular and ongoing. Employment NZ says it's your actual work situation, not the label, that decides whether pay-as-you-go holiday pay (at least 8% of gross) is allowed. If you've worked regular, continuous hours, you may in reality be an ongoing employee entitled to the protections of one, including notice and a fair process.

  • Ask for the written agreement. Is there a clause promising hours or availability?
  • Write down your actual hours for the last 12 months.
  • If you've been paid 8% holiday pay as you go but your hours were regular, Employment NZ says pay-as-you-go should stop once work becomes regular and ongoing, and you may then be entitled to 4 weeks of annual holidays. Ask Employment NZ or Community Law how this applies to you.
  • Casual workers can still apply for Jobseeker Support; Work and Income looks at your income.

Trial periods

  • A trial period (up to 90 calendar days) must be at the start of employment, in the agreement you sign before starting work, and only for someone who hasn't worked for that employer before. Otherwise it's invalid.
  • Employers don't need a fair process or a good reason to dismiss during a valid trial, but must still avoid misleading conduct, be responsive and communicative, and give the notice in your agreement (or reasonable notice if it's silent).
  • You generally can't raise an unjustified dismissal grievance, but you can if notice wasn't given, you started work before signing, you had no reasonable chance to get advice, or the agreement doesn't mention a trial. Other grievances (e.g. discrimination) stay open.
  • Immigration New Zealand doesn't allow trial periods for migrants on an Accredited Employer Work Visa.

Money while you sort it out

If hours are cut, Jobseeker Support can top up part-time income. Contact Work and Income early. See the Jobseeker guide and the stand-down guide.

Sources

General information only. Confirm with the agency for your situation. Spotted something out of date? Email help@unemployed.nz.