MEDIA REPORTS
Hundreds of Military staff face redundancy
Stuff – 23 June 2011Casino redundanciesStuff – 2 April 2011
Rail workshop redundancy process under fireNZ Herald - 21 July 2011
600 Job cuts at meatworks, Defence
NZ Herald – 29 June 2011
Pumpkin Patch cuts 55 NZ Jobs
NZ Herald – 15 June 2011
More Foodstuffs jobs go as staff pick redundancyManawatu Standard - 3 August 2011
WHAT IS REDUNDANCY?
• A situation where a “worker’s employment is terminated by the employer, the termination being attributable, wholly or mainly, to the fact that the position filled by that worker is, or will become, superfluous to the needs of the employer.”Section 184(5), Labour Relations Act 1987
RESTRUCTURING AN ORGANISATION
• Part of doing business, which is often required to ensure business survival and future profitability, but…
• it can have a major impact on employees and they must be treated fairly
JUST CAUSE TO RESTRUCTURE?
• Position must be superfluous to the needs of the employero Must be genuineo The employee can not be replaced by another doing the
same job
• The employee must not be at faulto Must be sound commercial reason not poor performance
THE PROCESS
• Giving appropriate notice of a restructure / redundancy proposal
• Being open minded to alternatives such as redeployment• Offering counselling and career advice services
CONSULTATION
• Intention to restructure relayed to employees• Opportunity for employee to express views and opinions• Employee has time to absorb and give feedback• Employer considers feedback• Decision communicated to staff
IMPLEMENTATION
• Decision conveyed to employee - can be eithero Reconfirmation of the status quoo Reassignmento Redundancy
• Needs to be done in an open and transparent manner!
RESOLUTION
For those employees made redundantExit package which may include:
• Help with CVs• Time off for interviews• Careers Guidance
TECHNICAL REDUNDANCY
• Arises with the sale of a business• Employees who are offered employment with the new
owner are technically redundant because their contract terminates when the business is sold
VULNERABLE EMPLOYEES
• Different rules for redundancy in terms of vulnerable employees under the Employment Relations Act 2000:
• Cleaning services and food catering services• Laundry services for education / health or age related
care• Orderly services for health or age related care• Caretaking services in education sector
VULNERABLE WORKERS
• Right to transfer on same terms and conditions
• Can stay with current employer
• Must given information to make an informed decision
• Must be given time to decide
Cleaning Company A
Cleaning Company B
Sold to
Employees
COMPENSATION
• No right to redundancy payments unless employer and employee have agreed.
• Can be done before or after redundancy is planned.• In some situations employees can ask the ERA to
determine payments.
UNJUSTIFIED DISMISSAL
• Redundancy is a dismissal and therefore employee can claim unjustified dismissal under s103A of the employment Relations Act
• Must be lodged within 90 days!
This presentation was put together by:Wellington Community Law CentrePO Box 24005, Wellington 6142(04) 499 [email protected]
Please feel free to download, adapt, improve, distribute, remix, tweak and build upon this presentation.
Disclaimer: We’ve made every effort has been made to ensure this information is correct at the time of publication. However, we can’t take responsibility for errors or omissions. Teachers and learners may need to seek specific advice for your particular situation. Where appropriate, we urge you to do so. Visit your local Community Law Centre: www.communitylaw.org.nz
THANK YOU