Jasper Brownley
[FYI request #26999 email]
9 July 2024
Dear Jasper,
OIA 23-24-56: Approach to redundancy.
Thank you for your email on 27 May 2024 to New Zealand Trade and Enterprise (NZTE),
making a request under the Official Information Act 1982 (the Act). You requested the following
information:
•
In 2023, in response to the end of taxpayer funded Covid funding, NZTE decreased
staff numbers with a redundancy of 4 months salary. Is this redundancy period
correct?
•
What was the total number of staff who lost their roles, and the breakdown between
NZ based and Internationally based people? eg - 20 staff: 10 NZ based and 10
Internationally based.
•
What was the official internal communications around the 4 months redundancy? In
addition was there any direct connection made between the 4 months redundancy
and NZTE internal values?
•
What is your redundancy term this time around and why? If it is not 4 months, does
NZTE admit it made yet another mistake with taxpayer dollars?
Answers to your questions are as follows.
1. As a result of the conclusion to NZTE’s COVID-19 Response and Relief Fund (CRRF), in
2023 we looked at the structure of the organisation and made changes to ensure we were
well set up to deliver on our strategy.
During the resulting change process, for those roles being disestablished we provided a
one-off approach of four months of salary as redundancy payment (unless the individual’s
employment agreement or the local labour laws require a higher payment), in addition to
the notice period.
2. There was a reduction in 71 roles: 40 NZ based and 31 Internationally based.
3. Of icial written internal communications regarding redundancy were as follows.
“If positions are made redundant, and we have team members leaving NZTE we would
apply a one-off One Global Team approach to pay four (4) months’ redundancy
compensation of base salary (unless the individual’s employment agreement or the local
labour laws require a higher payment). This is in addition to the notice period. The intent of
this minimum financial package is to ensure we have - to the extent we can - cared for our
people during what is a challenging time.”
T: +64 4 816 8100
F: +64 4 816 8101
W: nzte.govt.nz
W: newzealand.com/business
Level 15, The Majestic Centre, 100 Wil is Street, Wellington 6011, New Zealand, PO Box 2878, Wellington 6140, New Zealand
![](./foiextract20240709-3641-1v2q5bh-2_1.png)
4. The previous change process was an NZTE led initiative designed to realign the organisation
following the loss of a COVID-19 specific funding package. It was not driven by a broad cost
reduction directive. Of ering an additional month’s redundancy to our NZ employees was
carefully considered and agreed as appropriate given the context of the change.
The current change process is the result of a cost reduction directive across the public service.
In this context, it would not be appropriate to deviate from the standard NZ redundancy term of
three months.
You have the right under section 28(3) of the Act to seek an investigation and review by the
Ombudsman. Information about how to make a complaint is available at:
www.ombudsman.parliament.govt.nz or freephone: 0800 802 602.
Yours sincerely
Melissa Trochon
Director – Board & Ministerial