Because it’s the position that is no longer needed (not the employee), the redundancy is very likely to be unjustifiable if an employee loses their position and then is … This case is a useful reminder to employers that their conduct leading up to the dismissal of an employee could have serious repercussions especially if it later transpires the business does not have any reasonable prospects of defending the claim. During the Employment Tribunal hearing, a witness for Sunuva Limited admitted there was never any prospect of anyone other than Mrs Martin being selected for dismissal and it had been decided at the outset she would be dismissed. It is not acceptable for an employer to simply assert that it made a genuine business decision. d. What are the legal requirements in relation to redundancy/ restructuring? For more information about how we could help you, please contact us. The employee worked in a high-level management role. Leading law firms committed to helping clients cost-effectively will have a range of fixed-priced Initial Consultations to suit most people’s needs in quickly learning what their options are. Please enter the details of your question, Please let us know your preferred office of contact, Please let us know how you heard about us, Accreditations & Professional Memberships, Employment Tribunal Pricing For Employees, Employment Tribunal Pricing For Employers, Bereavement and Administration of Estates, Professional Attorney and Deputyship Service. Redundancy entitlements in New Zealand are currently not legislated so there is no statutory minimum redundancy pay. For more tools and resources visit www.aucklandchamber.co.nz Additional support provided courtesy of HRtoolkit Quick Guide to Managing Redundancy or Restructuring INDEX Associated Documentation Warning 1. OPINION: So far the Government has paid out $6.6 billion to employers to provide wage subsidies for over 1 million workers. If it is a ‘sham redundancy’ then, depending on the real reason for the dismissal, you might have grounds to bring a claim, such as unfair dismissal, discrimination or whistleblowing. This can be challenged as a sham redundancy- buts that’s another blog topic! A document was prepared by the Company stating Mrs Martin would be made redundant. We help people to understand their rights and obligations, and give people the support they need to take action. The recent Employment Court case of Stormont v Peddle Thorp Aitken Limited [2017] NZEmpC 71 is an example of how not to make an employee redundant. Redundancy payments. The Authority ordered the employer to pay the employee $8,150 for lost wages and $25,000 in compensation. What can I do? More information, and a notification template, can be found on the Services Australia website . A redundancy is when your employer discontinues your position for business reasons. 113-119 The Terrace  If a business is considering redundancy of 15 or more staff, employers must give written notification to Services Australia of the proposed dismissals. New Zealand and immigrant workers are being pitted against each other as businesses wield the axe over thousands of jobs. Williams (Deceased) [2012[ EWHC 586 (Ch) (16th of March 2021), Minimum wage for on call and sleep in shifts. Further consultation may be needed before a final decision is made. You’ve had a relationship break-up, family breakdown or violent relationship end. If your employer says they’re making you redundant they need to follow a … There was no real decrease in our client’s workload, however, he was made redundant. This amounts to almost six months' pay for workers earning the UK's median salary of £26,200 for full-time employees. Offer the employees an opportunity to have a representative during the consultation process. As there is no automatic entitlement to redundancy pay in NZ, some employers see redundancy as a way of getting rid of an employee they may not like but whose job performance is not poor enough to justify a dismissal. Redundancy. We assist with the establishment and effective maintenance of companies, trusts and a whole range of business structures. The entitlement of any employee to a redundancy payment largely depends on the employment agreement and will often form part of a negotiation between employers and employees. Redundancy. A restructure process must be based on the needs of the business and be managed in accordance to the business plan. As well as having to pay for their own legal fees and pay Mrs Martin compensation for unfair dismissal, they have also had to pay her legal fees. The South African Magazine provides current, high quality, relevant editorial on subjects relating to the links between South Africa and New Zealand. The latest changes to the Employment Relations Act 2000 focus on establishing minimum employment standards and increasing sanctions. Redundancy, health condition or disability or another reason you can’t work. Nicol v Canterbury Concrete Cutting NZ Limited; Minimum Wage; COVID-19 Corona Virus; Contact; Redundancy . In New Zealand, unlike Australia, Canada and several other OECD countries, there is no legal requirement to pay workers redundancy compensation, leaving unions and workers to negotiate redundancy clauses in their contracts. If you are considering carrying out a redundancy process, and are unsure how to do so correctly, it pays to speak with a professional experienced in the area. If 20 or more employees are to be dismissed within 90 days or less employers must consult with trade union representatives (if recognised) or employee representatives if no trade union is recognised. This is usually done so the employer can avoid their responsibility for employee entitlements. Workplace change covers the fair process that must be followed. Search the world's information, including webpages, images, videos and more. Businesses are still required to display the official QR codes for the NZ COVID Tracer app at all alert levels. 12.5 % off any subsequent matters for you. 10:26 am on 25 May 2020. Redundancy is when an employer reduces their workforce because a position or positions are no longer needed. In fact, it may be a "sham" redundancy. We will also give you a 17.5% discount off the first matter we handle for you and then 12.5 % off any subsequent matters for you. does not include any recruitment and retention or other allowances. Mrs Martin brought a claim of unfair dismissal on the basis the redundancy was a sham, namely there was a predetermined outcome to the redundancy selection exercise. 2. To qualify for a redundancy payment you need at least 104 weeks continuous service in the employment. Primarily, take a look at your employment contract and what it says on redundancy. Our expert property team can give clear advice about the requirements of the applicable law including the rules about disclosure required under the Unit Titles Act. With so much pressure on employers in 2020 due to COVID-19 – the introduction of work from home, social distancing and hygiene practices to prevent a second wave during Level 3 Alert, some employers will also need to consider restructuring and potentially disestablishing some positions to navigate their business forward. You can also use our calculator to … Then give the employee a copy of the letter. Replacing the employee, and then carrying out the process to justify the action, meant that the process was carried out for an improper purpose. The employer may have a firm view about what sort of changes are needed in their business; but they do have to keep an open mind when listening to the employee’s feedback. c. Who has special protection? Before Elijah started working for Base2Base Security, he was told he’d be an independent contractor and needed an ABN to get the job. At Rainey Collins we have an experienced team who can answer your questions and put you on the right track. In this case your employment is terminated not because of anything you’ve done or not done as an employee, but because your particular job is no longer needed. Acting for both employers and employees, we can advise on how to get the best possible outcomes. In this case, the redundancy was clearly a sham designed to exit an unwanted employee from the business. 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