Redundancy is an emotive subject for many but is quite simply another method of termination of an employee’s employment.  Therefore, there are processes that must be strictly adhered to as required by section 4 of the Employment Relations Act and the good faith requirements.

The employer’s good faith obligations contained in section 4(1A)(c) of the Employment Relations Act require “…an employer who is proposing to make a decision that will, or is likely to, have an adverse effect on the continuation of employment of his…employee…to provide the employee…(i) access to information, relevant to the continuation of the employee’s employment, about the decision; and (ii) an opportunity to comment on the information to their employer before the decision is made.”

This means that an employer considering redundancy action needs to ensure that he has given the employee a copy of all information that he is relying on in making the decision.

The employee must be given a genuine opportunity to comment on the possibility of redundancy, and any feedback that the employee may give regarding how the redundancy may be avoided should be carefully considered by the employer.  Finally, a decision can be made.

It is vital that an employer be able to justify the redundancy with a genuine business reason.  All information relied on by the employer must be verifiable and factual.

We are pleased to provide our clients with a step-by-step guide to redundancy processes, along with draft letters that can be adapted to suit their individual situations.

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