The current tough economic conditions mean we are seeing a dramatic increase in redundancies across all sectors in New Zealand. The cost of living has increased and business growth has slowed. Sadly, this is affecting many individuals and small business employers.
It is important for individuals going through a redundancy process to be aware of their rights, and it is equally important for employers understand their obligations.
An employer must follow a fair process when they want to make an employee redundant. They must have a genuine business reason to disestablish a position. They cannot use redundancy as a way of moving on someone they don’t think is performing well or doesn’t “fit in”. Decisions on which roles to make redundant must be made in a fair way and redundancy must be a last resort after considering all other options.
Employers must:
· Document their business case and proposal
· Present the proposal to employees
· Consult with employees and gather feedback
· Genuinely consider the feedback
· Confirm the new structure
· Implement the change
Support must be provided to staff including advice that they are entitled to have a support person/advocate with them throughout the process.
Common mistakes employers make include treating the proposal as a done deal, not allowing enough time throughout the consultation period, being unclear about intentions, and not providing enough information.
It is never easy either having to lay off employees or being an individual going through such a process. Employers must get it right and employees should be provided with a genuine and fair process while being supported.
If you need expert advice and support, contact us at proHR.
