Employee Transfer Letter (New Zealand)

An Employee Transfer Letter in New Zealand sets out the duties, hours, pay, leave, and termination terms between employer and employee, consistent with the minimum entitlements guaranteed by the Employment Relations Act 2000.

In New Zealand employment law, an employee transfer is a variation to the employee's employment agreement — specifically, a change to the agreed place of work as specified in the agreement under section 65(2)(a)(iii) of the Employment Relations Act 2000 (ERA). Because a transfer changes a term of the employment agreement, it is subject to the ERA's requirements for varying employment agreements. Section 65(2)(b) of the ERA provides that an employment agreement can only be varied by the written agreement of both the employer and the employee. This means that unless the employment agreement expressly grants the employer the authority to transfer the employee to a different location (through a mobility or flexibility clause), the employer needs the employee's consent.

The employer's good faith obligations under section 4 of the ERA are central to the transfer process. Section 4 requires the employer to be active and constructive, responsive and communicative, and not misleading or deceptive. In the context of a proposed transfer, this means the employer should consult with the employee before finalising the decision, explain the business reasons clearly, provide the employee with a genuine opportunity to raise concerns, and consider those concerns before proceeding.

Part 6A of the ERA contains specific additional provisions about the transfer of employment in the context of a restructuring — for example, where a business or part of a business is sold, contracted out, or the service is otherwise transferred. In these situations, affected employees may have specific entitlements to offer and acceptance of employment with the new employer on substantially similar terms. The employee transfer letter template in this document is designed for internal transfers within the same organisation, not for Part 6A restructuring transfers.

The Holidays Act 2003 provides that an employee's continuity of service is not broken by a transfer within the same organisation, meaning that accrued annual leave, sick leave entitlements, and service-based benefits are preserved. KiwiSaver contributions under the KiwiSaver Act 2006 continue on the same terms. The Privacy Act 2020 governs how the employer handles the employee's personal information, including address and family information, in connection with a relocation.

An Employee Transfer Letter is needed in New Zealand in several situations where the employer proposes to change an employee's place of work, location, or role within the same organisation.

Business expansion or restructuring is one of the most common reasons for an employee transfer. As organisations grow, merge, or restructure their operations, they may need experienced employees to move between sites to support new operations, manage new teams, or fill skills gaps. For example, a company expanding from Wellington to Auckland may need to transfer experienced team members to help establish the new office. In this case, the transfer letter formally documents the proposed change and invites the employee's acceptance.

Redeployment as an alternative to redundancy is another important context. Where an employer is restructuring and proposes to disestablish a role, the ERA requires the employer to consider whether there are alternative positions available to which the employee could be redeployed before concluding that redundancy is unavoidable. Where a comparable role is available at a different site or in a different department, the employer should offer it to the employee before making them redundant. An employee transfer letter in this context documents the alternative offer.

Employee-initiated transfers also occur where an employee requests a transfer to a different location for personal reasons — for example, moving cities to be closer to family. In this case, the employer's acceptance of the request should be confirmed in writing.

Transfers following a change in management or reporting structure may also require a transfer letter where the employee's reporting line or team changes as a result of an organisational redesign, even if their physical location does not change.

In all these cases, the employee transfer letter is a critical document for legal compliance and clear communication. It records the agreed terms of the transfer, protects the employer from later disputes about what was agreed, and informs the employee of their rights under the Employment Relations Act 2000 — including their right to raise a personal grievance if they believe the transfer is an unjustified disadvantage.

An Employee Transfer Letter for New Zealand should include the following key elements to comply with the Employment Relations Act 2000 and reflect good employment practice.

Employer and employee identification: The letter must identify the employer by full registered name and the employee by full name and current position, creating a clear record of who is party to the proposed variation.

Date and effective date: The letter must state the date it is issued and the date from which the transfer takes effect. Providing reasonable advance notice — typically at least two to four weeks for a local transfer, and more for an interstate or cross-city relocation — is consistent with the good faith obligations in section 4 of the ERA.

Reason for the transfer: The employer should clearly explain the business reason for the transfer. Transparency about the reason supports the good faith obligation and reduces the risk of the employee raising a personal grievance. Common reasons include expansion, restructuring, redeployment, or business need.

New position, location, and reporting line: The letter must clearly state the new place of work (including the full address and region), the new job title (if changed), and the new reporting line. These are material terms of the employment agreement that require the employee's agreement under section 65(2)(b) of the ERA.

Changes to employment terms: Any changes to salary, hours, duties, or other material terms must be clearly stated. If terms are unchanged, this should be confirmed explicitly. Changes require written agreement.

Relocation assistance: Where the transfer requires the employee to relocate, offering assistance with moving costs demonstrates good faith and reduces the risk of the employee declining. The letter should specify what assistance is available, the maximum amount, what is covered, and how to claim.

Employee response and deadline: The letter should invite the employee to accept the transfer in writing and provide a reasonable deadline for a response. The employee should be encouraged to seek independent legal advice and to raise any concerns before the deadline.

Personal grievance information: The letter must inform the employee of their right to raise a personal grievance within 90 days under section 114 of the ERA, and refer them to MBIE mediation services.

Governing law: The letter should state that it is governed by the laws of New Zealand, including the Employment Relations Act 2000, the Holidays Act 2003, and all applicable New Zealand legislation. The forms-legal.com Employee Transfer Letter (New Zealand) provides a ready-to-use template that meets New Zealand legal requirements.