With difficult economic times and businesses facing financial pressures, we are seeing increased restructures and redundancies.
In March, Xero announced it was restructuring which would result in up to job losses, Auckland Transport also announced job cuts as part of a restructure and in the same month Sky TV confirmed around 170 staff would be made redundant following its consultation process. There were also the shock redundancies for Today FM employees which made headline news.
The Department of Corrections is currently working through a restructure proposal, it is unclear whether this will result in job losses.
With the economic downturn and impending recession, employers may consider changes to their businesses to ensure financial viability.
Restructuring can be difficult and stressful for everyone involved, it must be for genuine business reasons and the employer must follow a process and act in good faith.
Restructure must not be for an improper purpose. It is not a way to manage or get rid of an employee with performance or misconduct issues.
The proposed restructure should be clear. Once the proposal is made to employees, any feedback should legitimately be considered. Appropriate time should be given for employees to digest and consider what is being proposed and so they can seek support.
We recommend any workplace considering a restructuring seek legal advice and guidance throughout the process. It is important employers understand and meet their legal requirements.
If you are facing restructure in your workplace and possible redundancy and believe your employer does not have genuine business reasons or is not acting in good faith/following a fair process BuckettLaw can help you understand your rights. If there is any wrongdoing, employees have the right to raise a personal grievance.
Our lawyers can help you navigate restructure and redundancy. Contact us today
See also our Reasons For Restructure And Redundancy Checklist article for more information.