b-fit with Gisborne Chamber of Commerce
"The Gisborne Chamber will assist members to connect with mentors and professional business trainers."
Services include: Training, mentoring, business advice, on-line resources.
The b-Fit resources on this web site include a Gisborne Training Resource Listing and a Training and Business Events Calendar.
Please contact the Chamber if you wish to be invloved in this part of the Gisborne Chambers activities.
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Redundancies - Follow the law or pay the price!!
Obviously this is not a decision that employers (for the most part) make lightly. Recuitment and investment in training employees is a significant cost and finding and holding onto talent has been identified as a key issue.
Once a compnay has got to the point that redundances seem the only option, they often want to proceed with great haste, sometimes immediately. While this is understandable, in a "rip the plaster off quickly" way, the law in New Zealand requires employers to approach possible redundancy with care.
To justify termination of employment by redundancy, it is necessary to have both a genuine reason for the redundancy, and to follow a "fair" process.
A genuine reason involves an assessment of whether the position or positions are genuinely superflous to the employer's requirements. It is the position not the person which must be considered. A redundancy is not the way to address performace concerns.
In terms of "process" the law (both common law and the Employment Relations Act 2000) requires sonsultation with employees whose positions may be affected.
Consultation involves developing a proprosal which sets out what the employer plans to do, the reasons for it, including any supporting information, and how it could affect existing employees. The proposal must be just that - a proposal rather than a predetermined decision. The information supporting the reasoning is critical and is required by the Employment Relations Act. Once the proposal has been developed, it meeds to be put to the employees who could be affected if it goes ahead. If the proposal is changed as a result of feedback, it could potentially affect other employees so it's a good idea to consult a wider rather than narrower group.
Employees must be advised of the proposal, its potential affects on their employment and crucially, that they will be given an opportunity to comment on that proposal and offer alternatives to it. Employees should not be expected to respond to it immediately but should be invited to take it away, consider it, take advice if desired, and meet again with the employer to provide comment or alternative suggestions.
A final decision on the proposal can only be made once the employer has received all of the employees' feedback. If it involves disestablishing certain positions, the employer must consider whether there are any alternative positions available for the employee which will avoid having to terminate their employment through redundancy. Only if there are no suitable alternatives to redundancy should an employee be given notice of termination.
If employment is termindated for redundnacy, employees are entitled to notice as per their employment agreement (or to be paid in lieu of notice), redundancy compensation if this is provided for in the employment agreements, and any outstanding holiday pay as at the date of termination. Employees may also want to consider the possibility of ouplacement support, assistance with drafting a CV and referees.
Not following the process risks a personal grievance for unjustified dismissal. This is likely to be for more costly in terms of taime, management imput, legal fees and other costs than simploy following a consultation process.
This summary is a guideline only and we strongly recommend that you seek advice prior to commencing any restructuring and consultation process.
Taken from the Chamber b-innovative mag - Author Alison Maelzer, - Sen Solitictor Hesketh Henry
E&OE
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