Redundancies are difficult and are emotionally straining for all parties involved. A Redundancy arises where a role becomes superfluous to the requirements of a business. Making a position redundant is dismissing a staff member by way of redundancy.
Any redundancy situation has to be carefully planned by management and implemented in full consultation with staff from the beginning.
Every step of the process can come under intense scrutiny by the courts if the Employer is called to task over it.
Businesses are required to be transparent with staff members in the redundancy selection process. Further, the Employer should invite open and frank discussion with staff for alternatives prior to committing to the redundancy path.
Employers need to be able to fully justify a redundancy, and show that they have followed fair procedure, they are of course also under an obligation to act in good faith at all times during the employment relationship.
There are certain steps that Employers can take pre, during and post the redundancy process to ensure that Employees are treated fairly, in accordance with the law, and to minimise the risk of facing a personal grievance.
Our new
Redundancies eBook on restructuring and redundancies serves as practical guide to help with implementing redundancies and restructuring while avoiding the mistakes that can be made throughout the process. It contains information on planning, proposals, consultation, selection, and other relevant topics such as post redundancy procedures. The book also contains planning documents and letter templates that can be used throughout the process.
Employer Support Package members, this eBook is available free to you under the "Library" tab of the Employers Toolbox.
www.employerstoolbox.co.nz,
Non members may purchase the eBook from the website
here.
We also highly recommend that you contact us before initiating a redundancy - give us a call on 0800 15 8000 before doing anything.