Reducing the Size of Your Staff?

Reducing the Size of Your Staff?

In the current Covid-19 environment we are seeing a significant increase in the number of redundancies. We have set out briefly below a few points to bear in mind if you are thinking about making roles redundant.

The Redundancy Must be Genuine

This means, that the business must genuinely conclude that its current business needs require that the affected positions are disestablished. The Courts can look beyond the question of whether a redundancy is genuine and inquire into the employer’s rationale/business case for the redundancy.  

The Employer Must Deal With the Affected Employee/s in Good Faith

This means the employer must be responsive and communicative during the consultation period. The duty of good faith also requires employers to provide employees with access to relevant information about the decision and an opportunity to comment on that information before a decision is made. In the current Covid-19 environment, employers may need to provide employees with relevant financial information to support the proposal to disestablish roles.

The Employer Must Follow a Fair Process

The employer must consult with the affected employee/s over the redundancy proposal and consider alternatives to redundancy before making a decision to dismiss.

This is a difficult time for all. Empathy and transparency in these times go a long way. As with all employment matters, not getting the process right can be costly. We are happy to assist you and guide you through the process, or assist if you have been presented with a proposal to disestablish your role.

Please contact:

Melissa Johnston on (09) 303 6729 (mjohnston@mcveaghfleming.co.nz)

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Employment Law

© McVeagh Fleming 2020

This article is published for general information purposes only.  Legal content in this article is necessarily of a general nature and should not be relied upon as legal advice.  If you require specific legal advice in respect of any legal issue, you should always engage a lawyer to provide that advice.

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