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Results for redundancy
Redundancy is defined at common law as a situation where an employee's position becomes surplus to the needs of the employer. A redundancy is treated by the Courts as a dismissal, therefore it must be genuine and carried out in a procedurally fair way.
When a genuine business restructure can still result in an unjustified redundancy dismissal because consultation, disclosure, selection, redeployment or the final decision was not fair and reasonable.
Employer redundancy guidance covering genuine business reasons, proposal documents, disclosure, consultation, selection criteria, redeployment and the personal-grievance risks of a predetermined process.
Gregory Clarke was made redundant from Omni Health during financial and organisational change. The ERA accepted the commercial rationale and found no suitable redeployment role, but examined whether a series of consultation and process defects caused a separate unjustified disadvantage even though the redundancy itself was genuine.
Regional sales manager John Pio was made redundant after Strautmann Hopkins lost the distribution licence underpinning its business. The redundancy had a genuine commercial basis, but Pio was given little warning, very limited time to seek advice and no meaningful opportunity to explore transfer or redeployment.
After 18 years at Radio Waatea, senior journalist and editor Adam Gifford was selected for redundancy in a restructure merging English and Māori newsroom functions. The employer had genuine business reasons but did not fairly disclose key proposal information, clearly identify his role as at risk or consult over redeployment.
KMW was selected for redundancy by ZIB Digital after a process the employee said had been predetermined and gave consultation no real prospect of changing the outcome. The ERA examined the business rationale, the information provided and whether the consultation was genuine.
Ms Bell challenged the disestablishment of her role at Hubergroup, arguing that the redundancy lacked a genuine business basis and that she was given an inadequate opportunity to consult on a proposal assembled in haste.
