Is restructuring the same as redundancy?
What does this mean? Usually, it is the same people being employed but doing different jobs for different pay. This is often called a restructure, but sometimes it strays into redundancy if the requirement for people to do a particular job is eliminated and they cannot do another job instead.
Can you restructure result in redundancy?
Strictly speaking, redundancy is when a role or position – rather than a person – is surplus to the business’ commercial needs. It’s an outcome, usually of a restructuring process.
What are the legal requirements for redundancy?
What’s a genuine redundancy?
- still needs the employee’s job to be done by someone (for example, hires someone else to do the job)
- has not followed relevant requirements to consult with the employees about the redundancy under an award or registered agreement or.
Can you be fired for restructuring?
While corporate restructuring and downsizing are quite common, some employers use them as a cover to illegally fire certain groups of employees. California is an at-will employment state, meaning employers can fire employees for any reason – except if that reason is discriminatory in nature.
Can I be made redundant if my role still exists?
No, but often the issue of whether or not a job still exists is a complicated one. Your employer has to be reasonable when making you redundant. Your employer can make you redundant if they genuinely don’t need you to do your job and your skills are no longer needed.
How soon after redundancy can you recruit?
Therefore, generally, you should not recruit into a role that you have made redundant for a minimum of 6 months after the termination date of the employee. The topics this post covers are: Making Sure You’re Using Redundancy Properly.
How do you terminate an employee due to restructuring?
It is with deepest regret that I must notify you of your position being eliminated from the organization.” Explain that the company is restructuring due to whatever reason and that their job is impacted. If you want to give a little more detail, wait until the second paragraph.
When is an employer considering making an employee redundant?
When an employer is considering making an employee (s) redundant or restructuring job positions, it is important that an employer shows good faith to its employees. The employer needs to ensure that the redundancy is genuine and must follow the correct process when carrying out either the redundancy or restructuring.
How to minimise the need for redundancies in a restructuring?
Firstly, where possible, minimise the need for redundancies. You can do this by: Then, you should consult with employees. First, set out your proposals in writing. This should include the reasons for the restructuring, and which employees are at risk of redundancy, and why.
Can a court question the wisdom of a redundancy?
The Court cannot question the commercial wisdom of a decision to create redundancies. Rather, the issue is whether the redundancy is genuinely the reason for terminating the employment. A redundancy is genuine if it is made for genuine commercial reasons. Factors that may suggest that a redundancy is not genuine include;
How can you tell if a redundancy is genuine?
A redundancy is genuine if it is made for genuine commercial reasons. Factors that may suggest that a redundancy is not genuine include; Having job positions after the restructuring which are substantially the same as the previous positions, but may just have a different job title;