Restructuring, redundancies

By Brooke McGowan Wakefields Lawyers

You might have seen headlines recently about major New Zealand employers who are restructuring their businesses and/or proposing redundancies that will affect many members of their organisations.

Local employers might also be considering how best to face tough financial times –which could include restructuring and/or redundancies. Here are some key things to know.

Employers cannot make any employee redundant without first going through a workplace change process, or “restructuring”.

Restructuring can involve adding new roles, merging roles, losing roles, or a combination of these. Restructuring must also be done for a genuine business reason. It is not a way to deal with any individual employee performance issues, and without a genuine business reason, the employer could face a personal grievance case.

Genuine business reasons include financial issues, changing the business’s offerings, wanting to outsource, and more.

Where restructuring might affect people’s jobs, a process must be carefully followed.

First, a proposal of restructuring must be documented in writing – focusing on changes to roles, not specific people.

Secondly, anyone affected must be invited to a meeting regarding the proposal.

Third, a meeting or meetings are held to talk through the proposal, timeframes, who will be affected, and how.

Then, the fourth step is to give employees time to submit feedback to the employer about the proposal. The employer must then genuinely consider the feedback, and if the proposal then changes substantially, the process restarts from the first step.

Once the proposed structure is confirmed, the employer must provide this in writing to those affected, and include further information, such as: the feedback that was considered, the decision-making process, what roles are affected

Do you know a Good Sort or Community Group making Kāpiti a great place to live, work, and play?

Nominations are open for the Kāpiti Good Sorts and Wellington Airport Regional Community Awards.

These awards are a great way to say thanks to the people who dedicate their time, knowledge, and skills for the greater good of our community.

We all know a Good Sort. And we all know of a Community Group doing good deeds.

Visit kapiticoast.govt.nz/good-sorts