Skip to the main content.
Talk to an expert
Talk to an expert
Featured Offer
Ambitious 50 →
6 months of Hire and Engage free for businesses under 50 people.

Hey Compono!

A coach that actually gets you.

Get 10 minutes free, then $15 a month. Cancel anytime.

Get Started ≫
Free tools › Redundancy pay by country

Redundancy pay:
New Zealand vs United States

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

How does redundancy pay compare between New Zealand and US?

New Zealand: None by statute. Redundancy compensation exists only if the employment agreement provides it. United States: None. Severance is a matter of contract or company policy; the WARN Act mandates notice, not payment.

New Zealand vs United States, side by side

New ZealandUnited States
The ruleNone by statute. Redundancy compensation exists only if the employment agreement provides it.None. Severance is a matter of contract or company policy; the WARN Act mandates notice, not payment.
At 1 yearNo statutory scaleNo statutory scale
At 5 yearsNo statutory scaleNo statutory scale
At 10 yearsNo statutory scaleNo statutory scale
Key numbersStatutory redundancy pay: None; What is required: Genuine reason, consultation, notice per the agreementFederal statutory severance: None; WARN liability for missed notice: Up to 60 days' back pay and benefits

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 States

The Fair Labor Standards Act has no severance requirement, and the Department of Labor says so in exactly those terms. Severance in the US comes from employment agreements, severance plans (enforceable under ERISA once promised) or collective agreements. WARN's teeth are back pay for missing notice, up to 60 days, not a severance formula.

  • Federal statutory severanceNone
  • WARN liability for missed noticeUp to 60 days' back pay and benefits
  • 'Two weeks per year of service' is common US practice, but it is policy, not law.
  • New Jersey's mini-WARN is the notable state exception, mandating severance for large layoffs.

Source: US Department of Labor (FLSA position, current). 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 StatesUS Department of LaborFLSA position, currentChecked July 2026

Next step

Calculator

True cost of an employee (New Zealand)

Put a full loaded-cost number on the New Zealand side. Free, every rate sourced.

Run the New Zealand number →Calculator

True cost of an employee (US)

The same loaded-cost maths for the US, on local rates.

Run the US number →Compare markets

Redundancy pay by country

The complete six-market picture, with the pick-two selector.

See all six →Free tools

All HR calculators

Every free tool for HR leaders, across six markets. No sign-up.

Browse the tools →

The rules you can look up.
The people you cannot.

Compono is a talent intelligence platform: an applicant tracking system and an employee engagement platform built on the same people data.

Comparing entitlements is the easy half of hiring across markets. The hard half is whether the person you hire in Sydney, Singapore or Seattle will actually work out, and that risk looks the same in every jurisdiction. Compono matches candidates on how they work as well as what the CV claims, so the hires behind these numbers hold up wherever you make them.

See how it works
Compono
$34M
saved by VicRoads over two years

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 US?

None. Severance is a matter of contract or company policy; the WARN Act mandates notice, not payment. The Fair Labor Standards Act has no severance requirement, and the Department of Labor says so in exactly those terms.

Where can I check the source figures?

The sources section below links the New Zealand and the US 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, the US Department of Labor or your own adviser. Last reviewed July 2026.