



Encompass
ER Solutions Provider

Restructuring and Redundancy
Employers are required to act in good faith when making employees redundant.
“Good faith” is all about consultation, the employer must before any final decision is made, provide the affected employees with all relevant information and an opportunity to feedback, and a real and genuine opportunity to effect any proposed change.
Redundancy is a situation where an employees position is surplus to the employers commercial needs.
“Restructuring” Employment relations Act 2000 :
¨ Entering into a contract or arrangement under which the Employers business [or part of it] is undertaken for the Employer by another person; or
¨ Selling or transferring the Employers business [or part of it] to another person.
The Act contains detailed requirements for restructuring, especially where it potentially impacts on specified categories of employees such as vulnerable workers, employees considered to be at greater risk of losing their job due to lack of bargaining power or frequent restructures
“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 minimized and business outcomes are achieved.”
We woud be happy to discuss a recommended process with you, and explore the possible alternatives available – ensuring your business meets current legislative requirements. Call to arrange a meeting and you will soon have your process underway.