The Retrenchment Letter is a crucial document in New Zealand's employment framework, used when an organization needs to reduce its workforce due to restructuring, economic conditions, or operational changes. It must comply with the Employment Relations Act 2000 and demonstrate adherence to good faith obligations. The letter serves as official documentation of the redundancy decision and process, typically following a consultation period with affected employees. It includes essential information about notice periods, final payments, outstanding entitlements, and available support services. The document is particularly important in New Zealand's legal context as it forms part of the employer's evidence of following fair and reasonable processes in implementing redundancies.
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1. Letter Date and Address Block: Formal letter heading including date, employee's name and address
2. Subject Line: Clear indication that this is a notice of retrenchment/redundancy
3. Opening Statement: Formal introduction and reference to any prior consultation or discussions
4. Business Context: Brief explanation of the business circumstances leading to the retrenchment decision
5. Confirmation of Position Redundancy: Clear statement confirming the position is being made redundant and the effective date
6. Notice Period: Details of the notice period and whether it will be worked or paid in lieu
7. Final Pay Entitlements: Breakdown of final pay including salary, annual leave, and any other entitlements
8. Return of Company Property: List of company property to be returned and process for return
9. Reference and Employment Certificate: Confirmation of providing employment reference and certificate of service
10. Closing Statement: Expression of regret, appreciation for service, and good wishes
11. Signature Block: Formal signature section for employer representative
1. Redundancy Compensation: Details of any redundancy pay or special compensation being offered, if applicable
2. Outplacement Support: Information about career transition services or job search support if provided
3. Redeployment Options: Details of any alternative positions available within the organization
4. Employee Assistance Program: Information about available counseling or support services
5. Non-Compete and Confidentiality: Reminder of ongoing obligations, if applicable under existing agreements
6. Union or Representative Details: Reference to union or representative involvement if applicable
7. Benefits Continuation: Information about any benefits that continue post-employment
1. Schedule A - Final Payment Calculation: Detailed breakdown of final payment including salary, leave entitlements, and any redundancy compensation
2. Schedule B - Company Property Checklist: Itemized list of company property to be returned
3. Schedule C - Support Services Information: Details of outplacement services, EAP contacts, and other support resources
4. Schedule D - Important Contacts: List of relevant contacts for HR, payroll, and other administrative matters
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