A recent case before the Employment Relations Authority again highlights the need to follow a proper process when dealing with a potential redundancy situation.

In this case the employer failed to consult with the employee and failed to explore other fulltime options within the company rather than redundancy.  An offer of part-time casual work was not considered sufficient as it was made after the employer had made up their mind on the redundancy – the information was not conveyed with an “open mind”.  Interestingly no lost wages were ordered as the likelihood of redundancy was high despite the poor process.  The employee was awarded $10,000 for hurt and humiliation and the employer also faced the costs and disruption involved in defending the claim.

If a proper process had been followed then the employer could have avoided being liable for the $10,000 hurt and humiliation award.

For a free copy of our guide on how to handle a redundancy see the download section or call Alan Knowsley.