Tech and IT layoffs in NZ: contracting, remote work overseas and visas

Context, with dates

Xero announced in March 2023 a plan to cut 700 to 800 roles, roughly 15 percent of its staff. That is old news and does not tell us about 2026. We did not find verified 2026 tech layoff announcements in our research, so check each employer's latest statements. The national picture is that unemployment was 5.6 percent in the June 2026 quarter, the highest since 2015.

Rights when your tech job ends

A genuine business reason, consultation and fair selection are required, even when the employer says automation is the reason.
Redundancy compensation is only payable if your agreement says so. Tech agreements often include it, and some include an enhanced 'restructure' payment. Ask for the clause.
Share options, RSUs and bonuses: check the plan rules. Vesting usually stops on your last day, and some plans have post-termination exercise windows. Get advice from an accountant before your last day.
Intellectual property and restraint of trade: employers can include restraint and non-solicitation clauses. They must be reasonable and are often not enforceable in broad form. Do not sign a new restraint during your exit without advice.
Garden leave and notice: you may be asked to leave immediately and be paid in lieu. Ask that the payment be in writing and confirm leave balances.
You have 90 days to raise a personal grievance.

Contracting and freelancing

Many laid-off developers go contracting. It can pay well but has real risks:

Issue	What to do
Employee or contractor?	Courts look at the reality of the relationship, not the label. If you work set hours under direction for one client, you may legally be an employee. Ask Employment NZ.
Tax	Set up with IRD, register for GST if you will earn over $60,000 in 12 months (check the threshold at ird.govt.nz), and set aside tax from each invoice.
No sick leave or holidays	Price your rate to cover gaps. A common rule of thumb is to treat a contractor rate as roughly 1.3 to 1.5 times the equivalent salary rate, but check the market.
ACC	Self-employed people pay ACC levies. Cover choices (CoverPlus Extra) are available. Check acc.co.nz.
Cash gaps	Late payment is common. Use deposits and short payment terms.

See the self-employment guides on this site for more detail.

Overseas remote work

Check whether you will be an employee or contractor. NZ employment protections may not apply if the employer has no NZ presence or the contract is governed by another country's law.
Pay: make sure you understand currency risk and tax. NZ tax residents are generally taxed on worldwide income, and there may be foreign tax too. An accountant is worth the cost.
Employer-of-record (EOR) companies hire you locally on the client's behalf. Check who is actually your employer, and what happens if the client ends the work.
KiwiSaver: contributions may not happen automatically for overseas payers.

If you are on a work visa

If your visa is tied to your employer (an Accredited Employer Work Visa), you need to act quickly. Read the migrants guides on this site and check Immigration NZ for your current options and time limits, because they are strict. Do not assume you can stay while you search.

Work and Income offers redeployment support for people facing redundancy. Its page says you can contact them before your job ends, even if no decisions have been made. Support can include a named contact who helps with your CV and cover letter, looks for jobs or training, connects you with employers and arranges financial support between jobs.

Email RedeploymentSupport@msd.govt.nz (the address Work and Income lists for redundancy support).
Call Work and Income on 0800 559 009 to talk about payments such as Jobseeker Support or a Transition to Work Grant.
Book a free career conversation with the Direct Career Service on 0800 222 733.

Sources

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