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Redundancy & Restructuring...

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Click here to download information for 'Restructuring, Redundancy and cutting staff cost' 

Redundancy or Restructuring are never nice nor easy processes to have to go through. However they are sometimes necessary and may even be essential to the survival of your business. When you come face to face with such a situation HRtoolkit can provide the help, support and expertise at every step of the process to ensure that you do get through with minimal risk of losing a PG for unfair dismissal. Access our Quick Guide to Redundancy to get a clear overview of the process that you need to follow.

The Chamber of Commerce Business HR Advice Line can assist you at any stage of the process through phone support, supply of document templates or even hands-on assistance and consultancy if that is what is needed. Call us on 0800 CHAMBER  (24 26 23) at any point to discuss this further.

1. Identify the Business Case for redundancy or restructuring

A role becomes redundant when there is a clear, identified business case to support that:

  • it needs to be changed significantly, or
  • it is no longer required in the business, or
  • it can no longer be sustained by the business
2. Consult with your staff
  • Once you have identified a business case that may support a redundancy or restructuring you need to consult with your staff about your proposal, what you aim to achieve, how you plan to go about it and about what the likely outcome will be if you do go ahead. 
  • Use the consultation document template as the basis for your consultation letter to all employees who are likely to hear about the proposal even if they may not be directly affected. This way you  make sure that you are communicating more effectively with your staff at a crucial and unsettling time ... rather than relying on "chinese whispers" to take your message in ways that you are not able to control.
  • Personalise your consultation letter - The "What does this mean for me" section of the consultation letter will need to be customised for each employee to ensure that it is personalised and relevant for each individual depending on how your proposal will impact them. (you may access sample personalised statements here)
  • Remember - it is the role or position that is initially identified as being redundant. If more than one employee occupies that role and you will still need one or more of them to continue then you will need to go through a selection process to determine whose employment will be terminated and who will remain. The business has the right to determine what criteria to use to make this selection, so long as you include this in the consultation process. You can use this Redundancy Assessment Matrix as a template to help you with this selection process.

3. Consider their feedback and adjust your plans if necessary before taking a final decision

  • After you present the proposal to the employees you must give them time to consider it and to come back to you with any feedback that they may have for your consideration. This Feedback Proposal Sheet  helps them to focus their feedback on the business issues included in the proposal rather than having them dwell on the personal impact of the proposed changes.
  • Once you receive the feedback, take some time to consider this and adjust your proposed plans if necessary before confirming your decision. This must be done in writing using one of these letter templates to confirm the outcome accordingly: confirmation of redundancy or confirmation NOT redundant. 
  • Meet with all impacted employees individually if this is possible to let them know the outcome including timeframes, payment issues etc. 
  • In order to help employees through this process you may also offer them individualised employee assistance. This can include counselling, CV preparation and job hunting skills. Contact the Chamber of Commerce Business HR Advice Line on 0800 CHAMBER (24 26 23) for information on how we can assist with this.
Note: If you think that our templates can help you through this process you can click on each link above and purchase the individual documents that you require. Otherwise you can purchase access to our entire document library for 12 months at just $299 (+GST) from here

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