With uncertain economic times approaching, more and more employers are proposing restructures and redundancies, as a result, it is vital that employers understand the legalities when imposing these changes and employees understand their rights when being subjected to these changes.
A redundancy is not to be used as a tool to dismiss an employee. There must be a valid, well-documented, and pressing business reason for the restructure/redundancy. Hard evidence must support these reasons and be the primary justification for redundancy.
The overriding duty to act in good faith throughout the consultation process is imperative. Fair process means providing all relevant information relied upon to come to the decision to terminate for redundancy. Failure to provide all relevant information may potentially make a justified redundancy unjustified. If the process has any discrepancies the employee may have the right to a personal grievance.
About Rose Alchin & Associates
We are a family owned, employment law specialists based in Hamilton, Waikato. Our experienced team of employment lawyers are dedicated to settling our clients’ matters swiftly and with as little disruption to their day-to-day work as possible.