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How to develop a proposal for change…

Redundancy is generally considered to be a situation where an employee’s position is surplus to the employer’s commercial needs. Employers must be able to justify redundancies substantively (show that they are genuine) and procedurally (that a fair procedure was followed). An employer who fails to carry out a proper restructure process will be potentially liable […]

New Law for Redundancy Dismissals

An important Court of Appeal decision has been released which changes the substantive justification for redundancy Introduction The statutory test of justification, which requires the analysis of “what a fair and reasonable employer could have done in all the circumstances” is to be applied to all dismissal situations. A dismissal for redundancy requires the same […]

Recent case: Employees’ redundancy solution practicable

Employers who are considering making employees redundant must properly consider any proposals put forward by affected employees. If this is not done the employer will not have acted in a fair and reasonable manner and any dismissal for redundancy may be found to be unjustified. An employer who failed to properly consider a job share […]

Right to view competing CVs given to job applicant

In an interesting Human Rights Review Tribunal case (Waters v Alpine Energy Ltd [2014] NZHRRT 8), a prospective employer was recently ordered to disclose confidential information to an unsuccessful candidate for two positions. The information required to be disclosed included information about the successful candidates and information from referees – despite the usual expectation of […]

Recent case: Both old and new employers ordered to compensate employee after the sale of the business

When a business is sold, staff must be clearly told what is to happen to their jobs. If employment is to end, the vendor employer must carry out a proper redundancy process. If the purchaser wishes to employ existing staff, it must enter into new employment agreements with those staff. A failure to tell employees […]

Restructuring and change management – How do I implement a justifiable redundancy process?

Background: I own a motel that currently has 28 rooms. I work a few hours myself and I employ a permanent part-time manager. I also have three employees (the cleaners) who are part-time with variable hours who carry out cleaning, servicing rooms and “whatever” turns up on the day. The manager helps with those duties […]

Recent case: Headhunting could be costly

An employer who entices an employee into leaving a good job with promises of an even better job, and who subsequently makes the employee redundant, may find that its earlier representations amount to an estoppel which will support a conclusion that a fair and reasonable employer would not have dismissed the employee. In Brake v […]

Recent case: Redundant employee reimbursed for lost wages

Generally, when a redundancy has been found to be genuine but the procedure undertaken by the employer in effecting the redundancy is procedurally flawed, the employee will not be entitled to be reimbursed for the resulting loss of remuneration. However, as the Employment Relations Authority pointed out in Rose v New Leaf Beauty Therapy Ltd […]

New redundancy rule – employer’s decision scrutinised

An important decision has recently been made by the Employment Court in terms of redundancy law.  Last month the Employment Court ruled that it can scrutinise an employer’s decision to make an employee redundant to ascertain whether there were sufficient business reasons for the redundancy. In Totara Hills Farm v Davidson, the Chief Judge of […]

RESTRUCTURING, CONSULTATION AND GOOD FAITH

Employment Protection Provision In accordance with Section 69OI(1) of the Employment Relations Act 2000 (the “Act”), an employee protection provision means a provision— (a) the purpose of which is to provide protection for the employment of employees affected by a restructuring;     and (b) that includes— (i) a process that the employer must follow in negotiating with […]

Employee cannot contribute to no fault situation

It is worth remembering that an employer who defends a claim of unjustified dismissal by arguing the dismissal was justified because the employee’s position had become redundant cannot then claim that any award for unjustified dismissal should be reduced for contributory conduct by the employee. In Ross v Midtown Medical Ltd, the employer might have […]

Employment Relations (Statutory Minimum Redundancy Entitlements) Amendment Bill 2012

This Member’s Bill amends the Employment Relations Act 2000, to insert a new Part 6E to provide the following minimum statutory entitlements for employees in the event of dismissal for redundancy: (a)    notice of dismissal of no less than 4 weeks; and (b)    compensation for redundancy in the amount of 4 weeks’ remuneration for the […]

Restructuring, Redundancy and Selection Processes

We’ve all heard about the controversial “Massey v Wrigley” case, which has redefined the way we need to conduct our selection processes when restructuring, at least for the time being.  We’re hoping this piece of case law will change before too long, and Government has indicated that if it’s not resurrected through the Courts then […]

Change Management

Take a look at this quirky video on change management. It’s only three minutes long and provides some useful tips if you’re about to embark on a change process in your organisation.