The Education Ministry has paused major staff cuts, saying a legal challenge could force it to start all over again.
The ministry has made a series of decisions that appear to cut more than 700 roles, some already vacant, as part of a government directive for savings.
But it told staff this week the next steps in that process were on hold due to a case the Public Service Association (PSA) had taken to the Employment Relations Authority.
The case was due to start on Friday.
"If the Authority find in favour of the PSA, we expect that the Authority would require the Ministry to pause all change processes. Further discussions with the PSA would follow, with the aim of reaching agreements on specific changes," the ministry's message to staff said.
"This may lead to new or amended proposals that may require further consultation before decisions are made and actioned."
The message said the ministry would continue with voluntary redundancies, but had paused expressions of interest in newly-created roles from staff losing their jobs.
It said the ministry hoped to "find agreement with the PSA and avoid protracted legal action and uncertainty for our people".
It also said cuts would still be required.
"To be clear, irrespective of how this unfolds, the Ministry is required to deliver cost savings. We have made every effort to find that money outside of a reduction to headcount, however the savings required to meet Budget 24 commitments are greater than we can meet without reducing staff numbers," the ministry said.
The PSA told its members the ministry would also extend the notice periods for staff who were facing redundancy soon.
It said pausing the expressions of interest process was the right thing to do.
"We know there are members who are seeking voluntary redundancy, some of whom have been (or are close to being) issued notice of redundancy, others are still awaiting decisions and outcomes to be communicated, and others have already accepted job offers in light of their impending departure from the Ministry.
"We are advocating for an approach to each member that recognises individual circumstances and where they are at in the process," the union told members.
Union assistant secretary Fleur Fitzsimons said the ministry needed to rethink its approach to the cuts.
"We welcome the pause the ministry's put on the current process because it's been so bad up until this point. People have been psychologically harmed and the ministry need to seriously rethink what they're doing," she said.
Fitzsimons said the union hoped the ministry would stop all dismissals until the ERA made its decision.
"The dismissals must stop, we must keep people in work, and work through issues on a case by case basis," she said.
