[I have a new post out, called the Redundancy Checklist.]
Here is some basic advice about applying for a benefit, for public servants who are out of work due to restructuring.
Firstly, losing your job is nothing to be ashamed of. I lost my job in 2016 and wrote a blog post about my personal crisis. I survived this, and you can too.
Secondly, you are a tax-payer and as a citizen or permanent resident you are entitled to apply, and if you qualify, to get financial support. Take advantage of that right.
The key to dealing with MSD is to apply as soon as possible, and to give them all the documents they request as quickly as you can. If you do apply, you can withdraw your application at any time.
One of the biggest myths around getting a benefit after losing your job is that you have to use up any redundancy pay before you apply for a benefit. You don’t.
The following advice is based on WINZ policy and the legislation.
Disclaimer: If you find a mistake, please let me know. Please note that I am not a lawyer, and the information provided here is based on information published by MSD and the content of the Social Security Act 2018 and Social Security Regulations 2018.
You should consult CAB, Community Law, or a Lawyer if in doubt.
Dealing with MSD
This probably goes without saying, but always be polite to MSD staff. They are working with archaic and outdated IT systems and case managers are very busy. Perhaps they have too many clients.
If you don’t understand something, ask (in writing if you can). If you still don’t understand, ask them to explain again. Take notes about every meeting you have – date, time, what was discussed, and any important points. These notes will be invaluable if something goes wrong, or you want to appeal any of the decisions MSD makes in regard to your application.
If you think you are losing your cool in a meeting—the complexities of dealing with MSD can be frustrating at times—ask for, and take, a time out. It is in your best interests to keep a clear head and to be respectful to staff at all times.
Applying for Roles
When you receive a benefit, you need to be looking for suitable work. Track all the jobs you apply for with the date the job listed, the day you applied, when it closes. Here is a Google Sheet you can use.
Send weekly updates to your case manager to ensure that the Ministry has a record that you are meeting your obligations.
If they ask you to go on a course, for example on writing CVs, just go. Failure to attend courses or meetings they specify will result in an obligation breach and
Obligation Breaches
If you breach your obligations MSD must write to you giving you 5 days to address the issue before they take action. This is a complicated area, and you should get advice if you get into this situation.
Resources
The WINZ website has a lot of information, but the most detailed information can be found on ‘MAP’.
According to an OIA response dated 12 June 2023, “The Ministry’s website Manuals and Procedures (MAP) contains current guidelines that operationalise legislation for staff to follow when assisting clients. These documents are written to enable staff to make accurate and sound decisions, ensuring clients receive their full and correct entitlement.”
MAP has links to relevant information, but you need to be careful. The material has been written for staff use and be hard to follow. If information provided on MAP appears to be ambiguous or unclear, you should refer to the Social Security legislation and regulations. If in doubt, get professional advice.
When to apply
You should apply as soon as possible. Do not delay. Get a client number first (see below), even if you might not end up using it, as you will need this in any interaction with MSD, even before you apply.
It is very important that you call WINZ as soon as you can to tell them your job has been disestablished and to ask them for Jobseeker support. This call establishes what is called ‘first contact’, and it ensures that your payments will start at the earliest date possible.
During the phone call, I would use words along the following lines: Hi, my job was recently disestablished and I don’t have another job to go to. I am applying for roles at the moment, but I want to apply for Jobseeker support as soon as possible.
Ask them to make a note of this on your file (this is why you need a client number first).
Specifically asking for Jobseeker support establishes ‘first contact’.
Be forewarned that wait times on the 0800 number can be 60 minutes or more. There is a call-back option. Use it.
WINZ payments will start at the end of your stand-down period, provided that you have either asked WINZ for support or have applied before the end of that stand-down period.
MAP says, “Generally, the commencement date is:
- the day after the initial stand-down ends or
- the application date
whichever is the later“.
Client Number
To apply for support you need a client number first. I suggest that you get this as soon as you know your job is to be disestablished.
Eligibility
To be eligible for support you must
- not be in full-time employment
- be available for and seeking full-time employment
- have taken reasonable steps to find, and be willing and able to undertake employment
Income calculation
WINZ uses the term ‘chargeable income’. This is the total income you receive (minus any allowable expenses) that is used to calculate your benefit payment. The calculation is done before any tax is paid. You will need to disclose all sources of income – interest, dividends, rentals, etc. Do not leave anything out.
The calculation is simple for a wage and salary earner, but can be complex if you are a sole trader as well, or have rental properties (even if held in a trust or company).
The situation for rentals that are not directly owned is complicated, and I won’t cover that here. What you need to know is that WINZ is allowed to consider income from companies of which you are a director, and there are broad rules about what qualifies as income.
Once you know your income, you can check the cut-out point. For a couple with children this is $1,068.
If you get less than that, there is a calculation to determine what you will be paid.
Stand-down period
The initial stand-down period is based on family circumstances and average income.
The formula for the initial stand-down period is based on the Gross Average Ordinary Time Weekly Wage (AOTWW) this comes from the Quarterly Employment Survey produced by Statistics New Zealand.
“Redundancy payments are included in the assessment of a person’s last 26 or 52 weeks’ income to determine the length of their initial stand-down. They are not used to calculate the date employment ceased.”
A redundancy payment is treated as an asset, with any income from that (in the form of interest) being treated as income. The Jobseeker benefit is not asset tested.
What this means in practice is that you will have a standdown of one or two weeks after your last day. You do not have to use up your redundancy payment.
Accommodation Supplement
The accommodation supplement is asset tested. The measure MSD uses is called ‘cash assets’.
It is important to note that a Section 123 payment (made as a result of a personal grievance at work) is not counted as an asset.
The decision
Once MSD has all the information they need, they will assess your situation and make a decision. The decision will be issued in writing.
I will offer one tip: If you are turned down for support, ask your case manager for a copy of all the calculations and file notes that relate to the decision, and check for mistakes.
I know of a case where MSD counted an income source twice, and failed to use supplied financial information in its calculations, so, it does pay to check.
Appeals
If you don’t agree with the Ministry’s decision – for example, you think they got your income or asset calculation wrong – then you can appeal.
See if you can sort this out with you case manager first, as this will be much faster. You can also escalate the issue to a manager to look into, especially if there has been an obvious mistake.
You must lodge your appeal within 3 months of the decision being made. I would lodge any appeal as soon as you can, as appeals can take sometimes take months to be heard, hence my advice to talk to your case manager first.
Be aware that the appeals process can take a long time because of the number of people filing appeals.
Disputes
The Ministry is covered by the OIA and the Privacy Act. If you ask them for information they hold about you, they must provide it.
You can also lodge a formal complaint, or complain to the Ombudsman. Most of you will never need to do either.
Closing thoughts
Losing your job is a shitty time. There is no other way to put it.
It is not your fault; it is not about you. This Stuff article (featuring me) may be helpful. If you are finding things stressful, find someone to talk to.
If you have any additional questions, post them in the comments section and I will do my best to answer if I can.
Stuff I'M Thinking About 
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