Redundancy

If you are being made redundant give us a call and we'll check that your rights are being met.

In business change is constant and often necessary.   Redundancy happens to most of us at some stage in our work lives.

Redundancy need not be a tragedy. Handled well it can create a financial opportunity to take a long-planned step in your career or facilitate the move to a better job.

There should be a genuine reason.

Sometimes employers use ‘Redundancy’ to dismiss staff when they don’t have grounds for dismissal.    If your employer says the business is struggling, but there is no evidence of that, or if you are the only person who is facing the redundancy process then it may not be genuine.  Your employer can’t employ a new person to do the same job as you, but they may be able to combine two jobs.  They can’t make you redundant and then advertise for someone to fill your role.  

It is a genuine redundancy if a person’s employment has been ended because their employer has decided, for ‘genuine reasons’ that the employee’s job is no longer needed. A ‘genuine  reason’  could, for example, be that the employer is making changes to enable the business to operate more efficiently and cost effectively; or closing down or selling the business. 
Minor alterations to a job’s role and responsibilities should not be a reason for redundancy.

When can a person be made redundant?

Two circumstances need to be present in order for a redundancy to occur:

  1. The position must be superfluous to the employer’s needs.
    For example, where a larger number of employees are employed than necessary to operate the business efficiently, certain positions may be disestablished.
  2. The position must actually disappear. The employer cannot claim redundancy by changing a job description slightly or employing new employees to undertake the same or a similar position.
  3. The employee must not be at fault

The decision must be about the position and must not be about an individual employee personally.  The employer cannot use redundancy as a means of getting rid of under-performing employees or disciplining employees for misconduct.

What is the process for making a person redundant?

Your employer must follow the proper process when they need to make you redudundant.

Restructuring or redundancy must be carried out in good faith and your employer must not mislead or deceive you.

Your employer must;

  • Give you written notice of a discussion/meeting. The letter should say that the meeting is to discuss redundancy or restructuring ;
  • tell you the reasons for the proposed changes, and how they will affect your job;
  • consult with you and anyone else who may be made redundant;
  • give you a chance to get independent advice, and to have a representative or support person with you when you attend the meeting to discuss your possible redundancy or restructure;
  • consider your suggestions before they make any decision about their proposed changes; and
  • consider alternatives to making you redundant e.g. giving you a job elsewhere in the company or reducing the hours you work.

Check your Employment Agreement

What does it say about redundancy in your Employment Contract ?  You should always make sure you are familiar with the terms of the employment agreement. This will usually have specific provisions dealing with redundancy process and any entitlements.

Redundancy Payments

Under New Zealand law it is not compulsory for an Employer  to pay redundancy compensation.  Check Your Employment Agreement:
If your employment agreement mentions redundancy compensation, it will probably also show what the amount of comensation will be.  If there is no mention of the amount it could be up for negotiation. 

Notice of redundancy

If there is no specific clause in an employment agreement giving a period of notice in a redundancy situation, ‘reasonable notice’ must be given. The length of ‘reasonable notice’ depends on a variety of factors, such as:

  • the reason for the redundancy
  • the employee’s length of service
  • the employee’s seniority and/or remuneration package
  • custom, practice and industry norms
  • the employee’s ability to find alternative employment
  • the amount of compensation being paid (if any).

A ‘reasonable’ notice period is usually two weeks to a month.

If the redundancy is false and amounts to an unfair dismissal we can pursue a grievance on your behalf.

We can help you with all aspects of redundancy, if you are not sure give us a call 0800 669 466.
It’s free to discuss your situation with us.

From Our Clients

Thousands of employees and employers have trusted us us to help with their employment issues, here are reviews from a handful of them.

I was in a very difficult and sensitive situation

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September 30, 2019
Review of Kam Bailey

I was in a very difficult & sensitive work situation. After contacting a couple of other services with no reply it was Kam from Work law who took on my case & managed everything for me. I was kept well informed a long the way & Kam quickly reached a positive result for me & my employer, amazing!. I really appreciate the work Kam & the Work law team have done. Highly recommended ;0)

Christian McLay

Couldn't be happier with how it all worked out!

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September 24, 2019
Review of Andrea Kelleher

I was lucky enough to have help from Andrea, she was so polite, helpful and made sure that I understood certain aspects to what was going on with the work she helped me with. I couldn’t have asked for a more easier and awesome process, couldn’t be happier with how it all worked out! Thank you heaps! Daniel

Daniel Marinov

Sandy's an Angel

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September 9, 2019

I was having a terrible time at my workplace. Sandy was one of the angels that helped me survive the whole ordeal, she had all the knowledge and experience needed to help, got straight onto my employers and had things settled so quickly. I am very thankful.

Stephanie B

 

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