Navigating the Legal Process of Making an Employee Redundant

August 14, 2023

in Employment

In our current economic environment, employers may find themselves faced with the challenging task of making an employee redundant.

Redundancy, although a difficult decision, is sometimes necessary to ensure the long-term viability and sustainability of a business.

However, it is crucial for employers to navigate the legal process with utmost care, adhering to the established guidelines to ensure fairness and compliance throughout the entire procedure.

At a high-level, redundancy is when an employer reaches a decision that a role is no longer required. Common reasons include economic downturn, technological advancements, organisational restructuring, or changes in business needs.

Redundancy should not be confused with dismissal for disciplinary or performance-related issues, as the legal process for redundancy differs significantly.

Throughout a redundancy process, an employer must take every substantive and procedural step in accordance with established New Zealand employment laws. If an employer does not get this process right, they open themselves up to legal action by way of personal grievance.

It is therefore best to consult a legal adviser before you begin the redundancy process. We have seen many employers enter the redundancy process without legal advice, only to find they have made a genuine mistake, and are now in a costly legal dispute with a disgruntled ex-employee.

It is much more cost efficient for an employer to follow the correct process, rather than have to back-track and face costs, or even the possibility of having to start the redundancy process again from scratch.

If you require any advice or further information on the matters dealt with in this publication, please contact the lawyer at Farry Law who normally advises you, or alternatively contact:

Vita Hansen

09 353 0055

The information contained in this publication is intended as a guide only.  It does not constitute legal advice and should not be relied upon as such.  Professional advice should be sought before applying any of the information to particular circumstances.  While every reasonable care has been taken in the preparation of this publication, Farry Law does not accept liability for any errors it may contain. 

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