CIVIL LAW Employment Law - Redundancy
Redundancy
Redundancy is genuine when the employee’s position ceases to exist. This generally occurs in one of the following ways:
a decline in available work; restructuring, including contracting out work; sale or transfer of the employer’s business. It must be remembered that a redundancy is actually a dismissal because the employment relationship is terminated by the employer, although most employment agreements deal with it separately because it is not a disciplinary action.
Once again, an employer must act fairly and reasonably in its dealings with employees and will be required to show:
The redundancy is for genuine commercial reasons. The relevant provisions of the employment agreement have been observed. The employer has acted fairly and sensitively in the way the redundancy was carried out PROCEDURAL FAIRNESS IN REDUNDANCY DISMISSALS
Since the Court of Appeal's decision in GN Hale & Son Ltd v Wellington Caretakers etc IUW 1 [1991] I NZLR 151, it has been accepted by the Tribunal and the Court that in a redundancy, as with any other dismissal, an employer must act FAIRLY.
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