Restructuring and Redundancy are a minefield, often resulting in personal grievances when uninformed employers make errors during the restructuring process.
It is unwise to go down this path without the correct knowledge and expert guidance so you don’t stray into personal grievance territory.
What is Restructuring?
Restructuring is a process undertaken by a business that needs to modify or reshape its operations to reduce debt, increase efficiency, and improve the business going forward.
It most commonly occurs when a business is facing financial difficulties. But the introduction of new technology which can do all or part of an employee’s job, or when a business needs to adjust its expenses due to losing profit, close down or relocate overseas are all bonafide reasons.
What is Redundancy?
Redundancy refers to the disestablishment of employee’s roles as a result of the restructuring process.
How do I prevent a Personal Grievance?
To avoid a personal grievance for unjustified dismissal or breaches of good faith, you must;
- Provide a valid business case(backed up by genuine figures) to support your decision to start a consultation process for redundancy.
- Have a genuine reasonfor carrying out the restructuring and not an ulterior motive, such as getting rid of staff you dislike.
- Carry out a full and fair consultation processcommensurate with the duty of good faith.
What is the Legal Test?
Your decision about whose position will be made redundant must be
“one that a fair and reasonable employer could have made in all the circumstances at the time the decision was made”.
You may terminate an employment relationship for redundancy if you carry out a consultation process and:
- The business proposal for change is circulated to all employees likely to be affected by the change.
- Employees are given a reasonable time to comment, respond, or suggest alternative ways to achieve the change objectives.
- The employee responses are considered or taken into account in the final decisions.
Join our FREE info session on legal requirements for Tradies in 2023 on Monday, 13th February, at 7.30 pm. It’s called Fish-Hooks in Redundancy and Restructuring. Just click this link
:
https://zoom.us/j/95515887037?pwd=djBWMFZkaDFValo1ODdwck1teWNjUT09
Disclaimer
We Love Tradies HR Ltd blogs contain only general information about legal matters. It is not intended to be legal advice and should not be treated as, or relied on, as such. For legal advice specific to your facts, please contact a lawyer appropriate to your legal issue.
