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Redundancies

Redundancies are a part of staff turnover that agencies have planned for. In the year to 30 June 2015, 380 employees in the Public Service were made redundant (down from 440 in 2014). The average redundancy payment decreased to $49,382 (from $55,825 in 2014). The total cost of redundancy decreased by 23.6% to $18.8 million (from to $24.6 million in 2014). Table 3.8 shows the number and total cost of redundancies in the Public Service have been decreasing since 2011.

The redundancies in 2015 were spread across 21 agencies, as shown in Figure 3.7. About 41% occurred in two agencies (MBIE and Justice). Most of the redundancies were due to agencies reviewing their operational and workforce requirement.

Table 3.8 Redundancies and average payments, June year 2011-2015
2011 2012 2013 2014 2015
Number of redundancies 888 764 696 440 380
Average payment ($) 45,728 50,650 47,696 55,825 49,382
Total cost of redundancy payments ($ millions) 40.6 38.7 33.2 24.6 18.8

Figure 3.7 Redundancies by department, June year 2015

Figure 3.7 Redundancies by department, June year 2015

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