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Redundancy & Restructure

As an employer ourselves we know that making staff redundant is a difficult but often necessary part of running a business. The redundancy consultation process can be a minefield and getting on the wrong side of redundancy legislation, even if unintentional, can prove very expensive. This is particularly so if an employee makes an unfair dismissal claim against you.

The most important part of any business restructure and redundancy programme is:

  1. You end up with the best staff to take your business forward and
  2. Any departing staff are treated fairly so they leave your business with their dignity intact


Redundancy Tips for Employers

It is important when making staff redundant that you minimise the chance of your business facing a Fair Work action from a disgruntled employee. Steps to help you stay on the right side of the legislation include:

  • Prepare your business case for staff redundancies. There are many reasons for restructuring a business but if it is to save money, identify the savings you expect to make before starting the consultation process.
  • Conduct staff consultation in a reasonable time period, with all affected employees and act with a sense of urgency. Where there is a Trade Union involved, include the Trade Union representatives in the process. In cases where a significant number of people are affected, consult with their chosen representatives and listen to their ideas and suggestions. Make sure all staff, including those on long term sickness absences or maternity leave are involved in the redundancy consultation process. The consultation period timeframe must reflect the complexity of the planned redundancy and the number of staff involved.
  • Identify a potential selection pool then ensure your selection criteria are fair and score each person as objectively as you can.
  • Follow the statutory dismissal process properly. Talk to us if you are unsure – one call may provide you with all the help you need
  • Make sure all departing staff leave with their dignity intact and have a reference to help them find a new role.

Once the redundancy process is over, make an announcement to help remaining staff stay motivated. Let them know you intend to keep them in your employment.

Every redundancy situation is different. Always seek business focused advice to help you navigate the rules of redundancy correctly.

Call 1800 HRDept (1800 473 378) or email for more information today.