Restructuring is a significant event in any organization. It is often a result of changes in the market, economic pressures, or strategic realignments. But for employees, it can lead to anxiety and uncertainty around the safety of your job. Understanding employee rights during this process is crucial for ensuring fair treatment and compliance with New Zealand employment law.
Quick Facts
As an employee, your core rights in the face of restructuring are the right to consultation, representation, fair process, redundancy compensation, reapply, and legal recourse.
1. Consultation Rights
Employers must engage in genuine consultation with employees about proposed changes that may impact their roles. This involves informing employees of the potential restructuring, explaining the reasons behind it, and considering their feedback. The consultation process should be meaningful and not merely a formality.
2. Right to Representation
Employees have the right to be represented during the consultation process. This can include union representatives or other support persons. Employers must allow employees to seek advice and assistance, ensuring that they fully understand the implications of the proposed changes.
3. Fair Process
Employers are obligated to follow a fair process when implementing restructuring. This includes providing adequate notice of changes, allowing employees to voice their concerns, and considering alternative options to redundancy where possible.
4. Redundancy Compensation
If restructuring results in redundancy, employees may be entitled to redundancy payments as outlined in their employment contracts or company policy. While the ERA does not mandate redundancy payments, many employers choose to offer them to support affected employees.
5. Right to Reapply
In cases where positions are made redundant but new roles are created, affected employees typically have the right to apply for these new positions. Employers should assess all candidates fairly, including those whose roles have been made redundant.
6. Legal Recourse
If employees believe their rights have been violated during the restructuring process, they can seek resolution through the Employment Relations Authority – this is where us at Sacked Kiwi are more than happy to stand by your side and make the best of a not great situation. It’s crucial for employees to document all communications and decisions made during this period.
Understanding employee rights during restructuring is essential for both employers and employees in New Zealand. By adhering to the principles of good faith and following legal obligations, employers can navigate the complexities of restructuring while minimizing the impact on their workforce. For employees, knowing their rights empowers them to advocate for fair treatment and support during what can be a challenging time. Ultimately, a respectful and transparent approach to restructuring fosters a resilient workplace, benefitting both the organization and its employees. If in doubt that you have been dealt a fair hand in the restructuring process (or any employment issue) give us a call and we can help you on your way. Get in touch via the website or call our toll-free hotline.
Legal Disclaimer
The content posted on the Sacked Kiwis website should not be considered or relied upon as legal advice or opinion. The information presented here is not intended to serve as legal guidance. Over time, laws and regulations evolve, potentially altering the accuracy of previously shared information. Updates in jurisprudence or legislation (for example, changes to the Employment Relations Act), which could happen without immediate notice, may render the legal information on this platform outdated or obsolete. Seeking legal advice is always advisable.
Should you need employment advice, please don’t hesitate to contact us through our toll-free hotline.
