Employers are required to act in good faith when making employees redundant.

Do you know what this means?


It’s all about consultation.  Before any decisions are made, an employer must first provide the affected employees with all relevant information, and an opportunity to provide feedback.

Redundancy is generally considered to be a situation where an employee’s position is surplus to the employer’s commercial needs.

‘Restructuring’ in terms of the Employment Relations Act 2000 means:

  • entering into a contract or arrangement under which the Employer’s business (or part of it) is undertaken for the Employer by another person; or
  • selling or transferring the Employer’s business (or part of it) to another person.

The Act contains detailed requirements for restructuring situations, especially where it potentially impacts on specified categories of employees such as vulnerable workers –  those employees considered to be at greater risk of losing their job due to lack of bargaining power and frequent restructuring.

“Successfully restructuring your business requires effective processes and specialist skills. Our Associates can provide your business with best practice advice and support, ensuring significant risks are minimised and business outcomes are achieved.”

Avoid Unjustified Dismissals
  • Careful steps must be taken before disestablishing an employee’s position
  • Employers must not use redundancy as a means for dismissing troublesome or underperforming staff
  • Consider all possible alternatives to redundancy, including:
    • Redeployment
    • Transfer to other worksites
    • Retraining
    • Voluntary redundancy

We will be happy to discuss a recommended process with you, and explore the possible alternatives available – ensuring your business meets current legislative requirements.  Call us to arrange a meeting with one of our Associates and you will soon have your process underway.