PUBLICATIONS | 22 November 2013

Getting Redundancy Right

Recent high profile redundancies in some of New Zealand’s largest businesses and organisations, including Telecom, New Zealand Post and the Department of Conservation, have meant that redundancy processes have been in the news.

The Employment Court has recently issued guidance on appropriate redundancy processes. The two cases noted below illustrate the requirement for employers to justify redundancies substantively and procedurally. An employer who fails to carry out a proper process will be liable for potentially significant remedies including compensation, penalties, lost remuneration and reinstatement (perhaps years later) of the employee to his or her former position...