What is the redundancy process?

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

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

The employee must be given a genuine opportunity to comment on the possibility of redundancy. Any feedback the employee gives regarding how the redundancy may be avoided should be carefully considered by the employer before a final decision is made.

Amendments to the Act now state more clearly the minimum requirements for employers proposing to make a decision that will affect their employee's employment.

Refer to our step-by-step process guide sheet. We also have some draft sample letters.