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Free tools › Redundancy pay by country

Redundancy pay:
New Zealand vs United Kingdom

Statutory redundancy pay in New Zealand and the UK, side by side, with the primary source for every figure.

How does redundancy pay compare between New Zealand and UK?

New Zealand: None by statute. Redundancy compensation exists only if the employment agreement provides it. United Kingdom: 0.5 to 1.5 weeks' pay per year of service by age band, after 2 years, with weekly pay capped at £751 and the total at £22,530.

New Zealand vs United Kingdom, side by side

New ZealandUnited Kingdom
The ruleNone by statute. Redundancy compensation exists only if the employment agreement provides it.0.5 to 1.5 weeks' pay per year of service by age band, after 2 years, with weekly pay capped at £751 and the total at £22,530.
At 1 yearNo statutory scaleNil (under the 2-year qualifying line)
At 5 yearsNo statutory scale5 weeks' pay (aged 22-40 throughout, capped at £751/week)
At 10 yearsNo statutory scale10 weeks' pay (aged 22-40 throughout, capped at £751/week)
Key numbersStatutory redundancy pay: None; What is required: Genuine reason, consultation, notice per the agreementFormula: 0.5 / 1 / 1.5 weeks per year by age band; Weekly pay cap: £751 (2026-27); Maximum: £22,530

New Zealand

New Zealand mandates process, not payment: a genuine business reason, good-faith consultation, redeployment considered, and contractual notice. If the agreement has no redundancy clause, no compensation is owed. A flawed process can still ground an unjustified dismissal claim even though no redundancy payment applies.

  • Statutory redundancy payNone
  • What is requiredGenuine reason, consultation, notice per the agreement
  • Final pay must still include unused annual holidays and other accrued entitlements.

Source: Employment New Zealand (Employment Relations Act 2000). Checked July 2026.

United Kingdom

Statutory redundancy pay uses three age bands: half a week per year under 22, one week per year from 22 to 40, and one and a half weeks per year at 41 plus. Service counts up to 20 years, weekly pay is capped at £751 for 2026-27, and the ceiling works out at £22,530. Two years' service is the qualifying line, unchanged by the Employment Rights Act 2025.

  • Formula0.5 / 1 / 1.5 weeks per year by age band
  • Weekly pay cap£751 (2026-27)
  • Maximum£22,530
  • Qualifying service2 years
Length of serviceEntitlement
Years worked under age 220.5 week's pay per year
Years worked aged 22 to 401 week's pay per year
Years worked aged 41 plus1.5 weeks' pay per year
  • ERA 2025 doubled the collective-consultation protective award to 180 days' pay, so process failures now cost far more than the redundancy pay itself.
  • Redundancy pay is tax-free up to £30,000.

Source: GOV.UK (Caps from 6 Apr 2026). Checked July 2026.

Sources

Every figure on this page comes from the government source for its market.

MarketSourceRule / effectiveVerified
New ZealandEmployment New ZealandEmployment Relations Act 2000Checked July 2026
United KingdomGOV.UKCaps from 6 Apr 2026Checked July 2026

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True cost of an employee (New Zealand)

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True cost of an employee (UK)

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Common questions

What is the rule on redundancy pay in New Zealand?

None by statute. Redundancy compensation exists only if the employment agreement provides it. New Zealand mandates process, not payment: a genuine business reason, good-faith consultation, redeployment considered, and contractual notice.

What is the rule on redundancy pay in the UK?

0.5 to 1.5 weeks' pay per year of service by age band, after 2 years, with weekly pay capped at £751 and the total at £22,530. Statutory redundancy pay uses three age bands: half a week per year under 22, one week per year from 22 to 40, and one and a half weeks per year at 41 plus.

Where can I check the source figures?

The sources section below links the New Zealand and the UK government pages every figure on this page was verified against in July 2026.

This page is general information, not legal advice. We check figures annually and update them on a best-efforts basis, but employment rules change and we cannot promise everything here is current or complete. Before you act on it, confirm the detail with Employment New Zealand, GOV.UK or your own adviser. Last reviewed July 2026.