Employment Lawyers · Employment & Labour Law

How To Negotiate Severance

Expert legal guidance on negotiating severance packages. Our employment lawyers provide strategic advice to protect your rights and secure a fair settlement.

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How To Negotiate Severance in New Zealand
An employee with eight years of service was recently made redundant without a genuine business case, offered a severance package that undervalued their role and tenure. This scenario is common, and navigating it alone can lead to accepting terms well below legal and market standards. Each listed firm specialises in securing fair outcomes in severance negotiations, protecting your entitlements and future career prospects. We provide strategic, evidence-based representation across New Zealand, ensuring you are not disadvantaged by complex employment law. For comprehensive legal support, explore our national services at our hub for employment law advice in New Zealand.

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Process

Employment law in New Zealand

Our negotiation process is a structured, technical legal strategy. It begins with a forensic review of your employment agreement, company policies, and all correspondence related to the termination. We analyse entitlements under the Employment Relations Act 2000, including redundancy clauses, notice periods, and any potential personal grievance claims for unjustified dismissal. We then prepare a detailed counter-proposal, often leveraging precedent and case law to substantiate claims for enhanced compensation, which can increase settlement values by 40-60% above initial offers. A critical step is understanding the specific dynamics of your situation, as detailed in our guide on What To Do When You Get Fired.

At a Glance

ParameterReference Value
Typical Negotiation Timeline2 to 6 weeks
Common Settlement Range Increase40% to 60% above initial offer
Key Document Review Period3 to 5 business days
Standard Legal Fee StructureFixed fee or hourly rate

Local Considerations — New Zealand

Severance negotiations in New Zealand are influenced by regional industry concentrations and local employment practices. In major centres like Auckland and Wellington, where corporate headquarters and public sector roles are prevalent, negotiations often involve complex organisational restructures and detailed policy frameworks. In contrast, regional disputes may centre on seasonal work or small business dynamics. Our national practice adapts its strategy to these contexts, whether addressing a tech sector redundancy under the Privacy Act 2020 or a dispute in the primary industries. We provide consistent, expert representation across all regions, ensuring local market knowledge informs every case we handle in New Zealand.

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Standards & Compliance

  • Employment Relations Act 2000
  • Holidays Act 2003
  • Privacy Act 2020
  • Good Faith obligations under Part 1 of the ERA
Each listed firm provides decisive, expert legal representation for severance negotiations across New Zealand. We are committed to achieving fair and legally sound outcomes that protect your professional and financial interests.

Frequently Asked Questions

What is the first legal step in a severance negotiation?

The first critical step is to secure all documentation—your employment agreement, redundancy letter, and any related communications—and seek immediate legal advice. Do not sign anything. We conduct a preliminary assessment to identify breaches of good faith, procedural flaws, or undervalued entitlements, which forms the basis of our negotiation strategy.

Can I negotiate severance if I was fired for cause?

Yes, but the strategy differs significantly. If the dismissal is potentially unjustified, the negotiation may focus on a personal grievance claim for reinstatement or compensation. The success hinges on the employer's ability to prove substantive and procedural justification, as defined by the Employment Relations Act 2000.

How long does the severance negotiation process typically take?

Most direct negotiations are resolved within 2 to 6 weeks. The timeline depends on the employer's responsiveness, the complexity of the claims (e.g., discrimination allegations), and whether mediation through the Employment Relations Authority becomes necessary to reach a settlement.

How much does it cost to negotiate severance in New Zealand?

Costs depend entirely on case complexity, the volume of evidence, and whether mediation or litigation is required. For a standard negotiation, we typically work on a fixed-fee basis for the advisory and negotiation phase. We provide transparent cost agreements upfront after assessing your specific situation and recommend obtaining a tailored proposal.