Checklist for restructuring and redundancy

The following checklist is a guide only and outlines the actions an employer would generally be expected to take when changing the workplace in a way that affects employees.

Individual cases are likely to require further specialist advice from your employment or legal advisor, particularly in complex situations.

You can also seek further information from the Department of Labour on 0800 20 90 20.

There are no general rights to redundancy compensation or rules about selecting employees for redundancy in legislation in New Zealand. However, requirements apply for consultation with most employees over changes in the workplace that affect them.

Additionally, employment agreements must outline how the employer will deal with employees on the sale of all or part of a business, and for some specified groups of employees undertaking particular work, there is a requirement that those employees transfer to the new employer when work is contracted out.

Make sure that you follow any requirements in the relevant employment agreement (i.e. for consultation and/or payment in the event of redundancy). It is possible that requirements in the employment agreement may override the suggestions in the checklist below.

STEPS FOR RESTRUCTURING AND REDUNDANCY

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Before you begin considering a restructuring, review the employment agreements and job descriptions of all those involved.
If a consultation process is required in the employment agreement, begin implementing the process as soon as possible. Note also that any requirements of the employment agreement may override other steps in this checklist.
Advise any employees whose current work may change or cease that you are considering changing the way work is organised.
Focus on the work, not the individual, when you start considering your future organisational needs.
Seek input from employees on possible changes. Make sure that employees have enough information (for example, about the problems you perceive and your goals) to make a meaningful contribution.
Develop a proposed structure based on your future organisational needs and the submissions received.
Consider whether you wish to offer voluntary redundancy and the criteria under which this will be offered. Selection for voluntary redundancy must still follow a fair process, including informing employees of the criteria.
If you do not have specific redundancy provisions and wish to propose some, consider the best stage to raise this with employees.
Distribute the proposed structure to employees, indicating to each employee whether their job remains unchanged, will change or will no longer exist. Identify any new jobs and the process for employees to get access to these jobs.
Confirm either new appointments (i.e. redeployments) or redundancies individually to employees in writing. Provide notice of redundancy in terms of the termination and redundancy clauses in the employment agreement.
If job changes are significant, renegotiate employment agreements to reflect the new responsibilities.
Identify any training needs to ensure employees can perform changed duties.
Consider providing time for job search and support to employees leaving the company.
Develop and provide comprehensive references for employees leaving the company.

Also read What you need to know about: Ending Employment Relationships

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