Redundancy Done Right: Protecting Your Business and Your People

In today’s ever-changing business landscape, companies sometimes need to restructure or streamline their operations. Whether it’s due to new technology that reduces the need for certain roles, a shift in business strategy, or broader economic pressures, you may need to make roles redundant.

It’s essential to handle redundancies legally to protect the business and the well-being of employees facing job loss. If the redundancy process is mishandled, you risk facing legal action for unjustified dismissal. An unjustified dismissal occurs when an employer fails to provide a fair reason or follow due process when terminating an employee’s position. 

To avoid this, here are key tips to ensure a smooth redundancy process:

1. Be Clear and Honest: Clearly explain why redundancies are necessary. Open and honest communication can help prevent misunderstandings and build trust.
2. Follow the Rules: Make sure you comply with all legal requirements, such as giving proper notice and paying any redundancy entitlements.
3. Talk to Your Team: Have discussions with employees and, if needed, their representatives. Listening to their concerns can help find solutions or alternative roles.
4. Provide Support: Offer help, such as career counselling or job search assistance, to affected employees, making their transition easier.
5. Keep Good Records: Document every step of the redundancy process. This can protect your business if any legal issues arise later.

Redundancies and Restructuring: Understanding Your Employer Obligations

If you are considering making roles redundant, it is crucial that you understand your legal obligations as an employer. 

Join LegalVision’s free webinar on Tuesday, 25 November, at 12 pm NZDT to understand your employer obligations on redundancies and restructuring. Pre-submit your questions or ask them live as Louise Miao (Associate) explores:

• the risks of terminating employment;
• what is a genuine redundancy;
• how to notify and consult with affected employees;
• the communication process; and
• issuing final pay (no redundancy pay obligation in NZ).

If you are unable to attend, you can still register, and LegalVision will send you a copy of the recording. You are also eligible to receive a free legal consultation.

Register for free today.

About Louise Miao

Louise is an Associate in LegalVision’s Employment team. She assists a large range of clients in setting up their employment agreements and workplace policies, while also assisting companies going through a restructuring or termination process.

About LegalVision

LegalVision is a commercial law firm transforming legal services. The firm’s unlimited legal services membership provides businesses with a faster, better quality and more cost-effective client experience. Visit legalvision.co.nz or call 0800 005 570 to get in touch with our team.

Insights from the team at LegalVision.