The ruling has major implications for any NZ employer weighing offshore resourcing
A New Zealand authority has ruled that replacing a local worker with a cheaper offshore resource is a legitimate ground for redundancy.
In a determination dated 3 March 2026, the Employment Relations Authority dismissed a claim of unjustified dismissal brought by Christchurch-based fire protection engineer Gitae Kee Nam against his former employer, GHD Limited.
Nam had been employed by GHD, a global engineering and advisory firm, from mid-2022 until August 2024. He originally applied for an advertised position titled "Auto CAD/Revit Technician (Fire Protection)" but was offered and accepted a contract with the title of Fire Protection Engineer. In practice, he spent roughly 80 percent of his time on AutoCAD and Revit modelling work. GHD's own internal correspondence had earlier flagged that Nam was one of two employees who had been hired "with a finance classification that does not align with their salary," pointing to a tension between his formal title and the work he was actually performing.
On 7 August 2024, GHD presented Nam with a change proposal citing falling workloads across the New Zealand business, driven by a change in government, delayed infrastructure investment, and cost pressures on clients. Utilisation rates across the team had dropped to around 60 percent, well short of the business target. Nam's own rate had fallen to 33.3 percent against a target of 75 percent. The...
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