The 3 Steps to Take When Dealing with Redundancy Issues

A Terminated EmployeeCompanies, whether large or small, would always have employees that enable them to run like a well-oiled machine. There are times, however, when the company would experience financial trouble and would need to let go of a particular branch or department. This may be a bit harsh on the employee’s side since they would face dismissal.

Start considering the redundancy processes of your NZ company when an employees’ job is already a surplus to the needs of the business. I.R.Thompson Associates Ltd and other experts list what you need to know:

Exhaust Redeployment Options

Labour laws provide career security to protect employees. Before dismissing them from work, you have to check whether you were able to exhaust all redeployment options. Any alternative option that an employee may enjoy as a matter of their right would have to be threshed out. This is enunciated by Employment New Zealand. Work this option with the employee, too.

Verify Date of Disestablishment

You also have to determine when the job of the concerned employee will end. If there are still several days or months before the job will come to a complete halt. Ask whether you still have options for the employee to stay a bit longer while redeployment options are being thought over. You can also try asking the employee whether it will be all right for them to keep on working and take redundancy at a later date. If you and the employee reach an agreement, make sure that it is in writing.

Counselling Support

Aside from redeployment, employees who are on the brink of losing their jobs would need some counselling. You should be able to provide this. If not, you could also provide outplacement support. Remember, more than anything, these employees would be losing their livelihood and they would need all the support that you can extend them.

Indeed, there is no assurance that when you run a company, you will not be encountering redundancy problems.