Niche Consulting offers the following services to assist with Career Transition and Change Management:
Many organisations in times of change and uncertainty need to consider organisational restructuring or changing the way they do business.
Often hard decisions need to be made by the leaders in the organisation to ensure the long term survival of the business.
Restructuring often results in the downsizing of the workforce, where employees will lose jobs and job uncertainty for all employees tends to rise.
Legal Requirements When Restructuring
We provide the following key points only as a guide and do not recommend they are any substitute to legal advice. We are not legally liable if you use any of the information provided below.
We advise our clients to consult an employment lawyer if your organisation is considering restructuring.
The Employment Relations Act (2000) and its amendments of 2004, provide many provisions that need to be taken into account as part of any change management planning process that may result in job losses.
Some of the key points follow:
Alongside substantive justification for the redundancy, procedural fairness is required to meet the Good Faith provisions that are part of the Employment Relations Act.
The process must be procedurally fair – even if it is a genuine redundancy situation, the lack of procedural fairness may open employers up to a personal grievance case.
Procedural fairness dictates that:
- Consultation with employees is done prior to decision making.
- Employees are entitled to request and receive information about the situation.
- Employees are to be given the opportunity to comment on the proposed new structure or reorganisation before a decision is made.
- Employees are to be given the opportunity to come up to alternatives to any proposed changes that may adversely effect the continuation of their employment, before a decision is made.
- Consultation should include notification of the proposed new structure, the business reasons and drivers behind new structure.
- Alternatives to redundancy must be seriously considered, such as redeployment, retraining and other alternatives.
- The proposed outcome of the consultation cannot be a fait accompli – it needs to be meaningful consultation where the decision has not yet been made.
- In cases where restructuring results in the creation of new roles and the disestablishment of existing roles, consultation is required.
- Where there is more than one individual who may be suitable for new or remaining roles, the consultation process should also involve discussions about the selection criteria and the application of that criteria to individual employees.
- If there is more than one applicant for a position then the selection process must be fair and selection criteria objectively measured, by means such as psychometric assessment.
- Counselling or outplacement support must be considered for those affected by redundancy.