{"id":229661,"date":"2025-11-25T16:24:51","date_gmt":"2025-11-25T03:24:51","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=229661"},"modified":"2025-11-25T16:25:53","modified_gmt":"2025-11-25T03:25:53","slug":"webinar-summary-redundancies-and-restructuring-understanding-your-employer-obligations","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/employment\/webinar-summary-redundancies-and-restructuring-understanding-your-employer-obligations\/","title":{"rendered":"Webinar Summary: Redundancies and Restructuring: Understanding Your Employer Obligations"},"content":{"rendered":"\n<figure class=\"wp-block-embed is-provider-youtube wp-block-embed-youtube\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Redundancies and Restructuring: Understanding Your NZ Employer Obligations | LegalVision\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/0GhSMiIJDmE?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<div  class=\"box box--icon box--warning\">\n    <p><b><i>DISCLAIMER: This webinar transcript is auto-generated and may contain errors. <\/i><\/b><a href=\"https:\/\/legalvision.co.nz\/contact-us\/\"><b><i>Please seek legal advice<\/i><\/b><\/a><b><i> for guidance specific to your situation<\/i><\/b><\/p>\n<\/div>\n\n\n\n<p><strong>Mike:<\/strong><br>Afternoon everyone, and welcome to today\u2019s LegalVision webinar: <em>Redundancies and Restructuring \u2013 Understanding Your Employer Obligations<\/em>. Please feel free to scan the QR code and download our guide at any stage. We will put that up again shortly.<\/p>\n\n\n\n<p>I\u2019m your host, Mike, and we\u2019re very lucky to be joined today by our Senior Associate, <strong>Louise<\/strong>.<\/p>\n\n\n\n<p>Before we begin, just some quick housekeeping. You will receive a recording and the slides by email, so feel free to take notes if you wish, but don\u2019t feel like it needs to be frantic; we will send everything to you afterwards. Please submit your questions in the Q&amp;A box below and we\u2019ll do our very best to answer them at the end. And please complete our feedback survey after the webinar; it\u2019s really helpful.<\/p>\n\n\n\n<p>Don\u2019t forget that you are eligible to claim a complimentary legal consultation with us by viewing the webinar today. That\u2019s where we can jump on a call with a consultant to discuss how LegalVision can help your business navigate legal requirements, which differ for every business. To claim, simply leave your contact details in the survey that appears when the webinar ends, or contact us via the website.<\/p>\n\n\n\n<p>Fantastic. I\u2019ll now hand over to <strong>Louise<\/strong>, our expert. Enjoy everyone.<\/p>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2022\/09\/23172253\/how-to-hire-and-inspire-560x792-1.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">NZ How to Hire and Inspire<\/div>\n            <div class=\"body-text\">\n                <p>Hiring new employees for your NZ business can be complicated. Let us help you scale up and reach your next milestone faster with this free employer guide.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.nz\/nz-how-to-hire-and-inspire.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<p><strong>Louise:<\/strong><br>Thanks, Mike. Today I will be giving a quick introduction to restructures and redundancies, the process of a restructure, how the consultation process works, what a genuine redundancy is, and what the risks are when you terminate employees as part of a restructure or redundancy. Then we\u2019ll move into a Q&amp;A.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Introduction<\/strong><\/h3>\n\n\n\n<p>Restructures and redundancies relate to more than just a legal process and framework. You do need to consider your legal responsibilities under legislation, but also your moral and ethical responsibilities, including your duty of good faith to employees. A restructure or redundancy process can be stressful, so it\u2019s important to meet your legal obligations while ensuring employee wellbeing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What Is a Restructure?<\/strong><\/h3>\n\n\n\n<p>A restructure occurs when an employer makes significant changes to how their business is set up and operates. This may change reporting lines, combine or eliminate teams or departments, or reallocate work and responsibilities.<\/p>\n\n\n\n<p>Organisational change can lead to positions becoming redundant if a role is no longer required or if the work is being done differently in the new structure.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What Is a Redundancy?<\/strong><\/h3>\n\n\n\n<p>A redundancy occurs when an employer no longer requires an employee\u2019s job to be done by anyone. This means the position becomes surplus to business requirements. Redundancy relates to the role, not the employee\u2019s performance or conduct.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Restructure Process<\/strong><\/h2>\n\n\n\n<p><strong>Louise:<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. Proposal<\/strong><\/h3>\n\n\n\n<p>Before announcing anything to staff, you should prepare a proposed restructure. This involves identifying the business reason driving the change and developing a proposed new structure compared to the existing one. You must determine which roles may be affected\u2014whether by minor changes or full disestablishment\u2014and plan the timeline and process.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. Announcing the Proposal<\/strong><\/h3>\n\n\n\n<p>You must inform employees as early as possible that you are considering a restructure. This communication should:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Explain the business reasons for the change<\/li>\n\n\n\n<li>Outline the proposed structure<\/li>\n\n\n\n<li>Identify which positions might be at risk<\/li>\n\n\n\n<li>Explain the consultation process and timeline<\/li>\n<\/ul>\n\n\n\n<p>Employees should receive this information in writing with a clear statement that this is a proposal, not a final decision.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Genuine Consultation<\/strong><\/h3>\n\n\n\n<p>Once the proposal is given, you enter the consultation phase. Consultation must be genuine and meaningful.<\/p>\n\n\n\n<p>Employees must have adequate time to provide feedback, suggest alternatives, and raise concerns. A large-scale restructure usually involves a 2\u20134 week consultation period, though it may be shorter if only one or two employees are affected.<\/p>\n\n\n\n<p>Employers should meet with affected staff, listen to concerns, consider suggestions, and keep an open mind to changes. Employees may bring a support person or provide written feedback instead of attending a meeting.<\/p>\n\n\n\n<p>The employer must genuinely consider all feedback and seriously evaluate alternatives. If feedback requires significant changes, you may need to restart the proposal stage and re-consult.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4. Exploring Alternatives<\/strong><\/h3>\n\n\n\n<p>You must actively explore alternatives to redundancy, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Redeployment<\/li>\n\n\n\n<li>Voluntary redundancy<\/li>\n\n\n\n<li>Reduced hours instead of eliminating roles<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>5. Final Decision<\/strong><\/h3>\n\n\n\n<p>After the consultation closes and feedback is considered, employees must be notified in writing if their role is being disestablished, including the reasons and any notice periods or severance entitlements under the employment agreement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>6. Selection Process (If Applicable)<\/strong><\/h3>\n\n\n\n<p>If you must choose between employees for a reduced number of similar roles, you must apply fair, objective criteria such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Skills<\/li>\n\n\n\n<li>Qualifications<\/li>\n\n\n\n<li>Performance history<\/li>\n\n\n\n<li>Experience<\/li>\n<\/ul>\n\n\n\n<p>The criteria must be applied consistently and must not be discriminatory (for example, based on age or sick leave usage).<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Consultation Process in Depth<\/strong><\/h2>\n\n\n\n<p><strong>Louise:<\/strong><br>Once employees receive the proposal, they must be given sufficient time to consider it, seek legal advice, and provide feedback. If they request additional time to obtain advice, you should allow this in good faith.<\/p>\n\n\n\n<p>You must genuinely consider all feedback. A good approach is to document why you accepted or did not accept each suggestion. If feedback relates to a specific individual, you may provide a separate one-on-one response. If it is general, you may prepare a consolidated Q&amp;A document.<\/p>\n\n\n\n<p>If feedback substantially changes the proposal, the best approach is to issue a revised proposal and restart consultation. If proceeding with the original proposal, you must confirm the new structure in writing and in a meeting.<\/p>\n\n\n\n<p>There is no set time for the restructure process, though four to six weeks is typical. You should consider public holidays, annual leave, and other factors when assessing whether the timeframe is fair and reasonable.<\/p>\n\n\n\n<p>From an HR perspective, communication with all staff is important\u2014not just those affected\u2014because restructures create uncertainty. You should have ongoing communication, regular check-ins, and a clear feedback management process.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex 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There must be a real business reason, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Financial factors<\/li>\n\n\n\n<li>Decreased work volume<\/li>\n\n\n\n<li>Closure of a business unit or department<\/li>\n<\/ul>\n\n\n\n<p>If the work continues to exist or someone is hired shortly afterwards to perform similar work, this raises questions about whether the redundancy is genuine.<\/p>\n\n\n\n<p>Even where redundancy is genuine, a fair process is legally required.<\/p>\n\n\n\n<p>A restructure must not be used to target poorly performing employees. Termination should be a last resort, with other options considered.<\/p>\n\n\n\n<p>There is no statutory entitlement to redundancy compensation in New Zealand; entitlements depend on the employment agreement.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Risks of Terminating Employment<\/strong><\/h2>\n\n\n\n<p><strong>Louise:<\/strong><br>If an employee wishes to challenge a redundancy, they must raise a personal grievance in writing within 90 days.<\/p>\n\n\n\n<p>Common grounds include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Procedural unfairness (e.g., predetermined outcome, inadequate consultation)<\/li>\n\n\n\n<li>Substantive unfairness (e.g., incorrect business rationale)<\/li>\n\n\n\n<li>Disadvantage (e.g., impact on employees on parental leave)<\/li>\n\n\n\n<li>Unfair selection criteria<\/li>\n<\/ul>\n\n\n\n<p>The <em>Grace Team Accounting<\/em> case is a key example: the Court of Appeal held that a redundancy must not only follow a fair process but also be based on correct factual information and genuine reasons.<\/p>\n\n\n\n<p>If a grievance proceeds, cases typically settle in mediation, or may proceed to a hearing at the Employment Relations Authority, then potentially the Employment Court, Court of Appeal, or Supreme Court. These processes involve significant time, stress, and legal cost, and decisions are public.<\/p>\n\n\n\n<p>From an HR perspective, the main risks are reputational damage and the impact on remaining employees, who may feel vulnerable or stressed. You should approach the process with genuine care and prioritise employee wellbeing. EAP support should be offered where available.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Closing Remarks and Membership Overview<\/strong><\/h2>\n\n\n\n<p><strong>Louise:<\/strong><br>That concludes the main part of our webinar. You may find our <em>How to Hire and Inspire<\/em> guide useful; the QR code is on screen and it\u2019s also available in the resources tab.<\/p>\n\n\n\n<p>We also have a webinar on 9 December at 12:00: <em>Tips to Help Your Business Avoid Going to Court<\/em>. Highly recommend joining if you find that topic interesting.<\/p>\n\n\n\n<p>Regarding membership, while you submit questions, I\u2019ll briefly explain LegalVision membership. As a member, your business gets unlimited access to our full team of 100+ specialist lawyers for all business-as-usual legal needs. It\u2019s like having your own in-house counsel for a fraction of the cost.<\/p>\n\n\n\n<p>Our team provides unlimited document drafting and review, unlimited legal advice consultations, unlimited domestic trade mark registration, and much more. You never have to worry about the cost of lawyers again. We can also support in-house teams with high-volume legal tasks, and we invest in understanding your business so we can work as an extension of your legal function.<\/p>\n\n\n\n<p><strong>Mike:<\/strong><br>Thanks, Louise. It\u2019s worth joining even just to build out your legal planning timeline for the year ahead. To claim your consultation, complete the survey at the end of the webinar.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Q&amp;A Session<\/strong><\/h2>\n\n\n\n<p><strong>Louise:<\/strong><br>Now let\u2019s move into the Q&amp;A session. I have some pre-submitted questions that I\u2019ll go through first, and then I\u2019ll take some from the audience.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Q1: Can an employee challenge the restructuring, and if so, on what grounds?<\/strong><\/h3>\n\n\n\n<p>Yes, an employee can challenge a restructure through a personal grievance claim. Common grounds include procedural unfairness, inadequate consultation, insufficient notice, or failure to genuinely consider feedback. Other grounds might involve the business rationale, such as if the restructure is a sham to target specific employees. Additionally, if the restructure disadvantages certain employees\u2014such as those on maternity or parental leave\u2014that could be grounds for a grievance. Finally, if the selection criteria are unfair or discriminatory, that could also form the basis of a challenge.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Q2: Do I need a lawyer for every business decision?<\/strong><\/h3>\n\n\n\n<p>Not necessarily. Many decisions are commercial, but from an employment perspective\u2014especially during a restructure\u2014it\u2019s always best to engage a lawyer to ensure that you are following the correct process and steps to avoid personal grievances later on.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Q3: How long should you wait for feedback after proposing a restructure before confirming it\u2019s going ahead?<\/strong><\/h3>\n\n\n\n<p>There\u2019s no fixed time frame, but it depends on the number of employees impacted. For a small restructure affecting only one or two roles, a 5-10 day feedback period might be enough. For larger restructures involving more employees, you might need a couple of weeks to ensure everyone has enough time to seek legal advice and provide feedback. If one-on-one meetings are needed, factor that time in as well.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Q4: How do you show that you tried to redeploy an employee to another part of the business?<\/strong><\/h3>\n\n\n\n<p>If there are active roles advertised within the business, these should be offered to the employee as part of the restructure, provided they are suitable. If the role requires upskilling, you should offer assistance to the employee in that process. If the role is completely different, and the employee cannot perform it, you can indicate that no suitable redeployment opportunities exist.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Q5: How do you do the selection process when multiple identical roles are being reduced?<\/strong><\/h3>\n\n\n\n<p>You need to establish clear, objective criteria based on skills, qualifications, performance, experience, and potentially client feedback. Ensure that all affected employees are assessed against the same criteria, and the criteria must not be discriminatory. It&#8217;s also important to document how each employee was assessed and be transparent if employees ask to see their scores.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Q6: What if restructuring is a result of an external factor?<\/strong><\/h3>\n\n\n\n<p>External factors, such as losing a key client, can be a valid reason for a restructure. Most restructures we deal with are due to external factors, like client loss, which leads to financial downturns or departmental closures. If the restructuring is due to external factors, it is still typically a valid reason for making changes.<\/p>\n\n\n\n<p><strong>Louise:<\/strong><br>That\u2019s all the questions for today. Thank you so much for your time, and I hope you found today\u2019s webinar useful. If you need further assistance, don\u2019t hesitate to reach out to us.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<p><strong>Mike:<\/strong><br>Thank you very much to <strong>Louise<\/strong> for her expertise today. That was a brilliant and topical webinar. We\u2019ll see you all at the next one. Thank you everyone for attending. Goodbye.<\/p>\n\n\n\n<p><strong>Louise:<\/strong><br>Thank you.<\/p>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"ed19fd34f0\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/229661\" \/>            <input value=\"https:\/\/legalvision.co.nz\/employment\/webinar-summary-redundancies-and-restructuring-understanding-your-employer-obligations\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"Webinar Summary: Redundancies and Restructuring: Understanding Your Employer Obligations\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Mike:Afternoon everyone, and welcome to today\u2019s LegalVision webinar: Redundancies and Restructuring \u2013 Understanding Your Employer Obligations. Please feel free to scan the QR code and download our guide at any stage. We will put that up again shortly. I\u2019m your host, Mike, and we\u2019re very lucky to be joined today by our Senior Associate, Louise.<a href=\"https:\/\/legalvision.co.nz\/employment\/webinar-summary-redundancies-and-restructuring-understanding-your-employer-obligations\/\">Continue reading <span class=\"sr-only\">&#8220;Webinar Summary: Redundancies and Restructuring: Understanding Your Employer Obligations&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13387,"featured_media":228294,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[5],"tags":[],"class_list":["post-229661","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Webinar Summary: Redundancies and 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