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Redundancy process required even if business not viable…

A recent Employment Relations Authority decision has upheld a personal grievance claim over an employee’s redundancy.

The employer decided the business was not viable and would close.  All the staff were advised they were being made redundant.  The employer failed to discuss the position with the staff before the final decision to shut was made and failed to give the staff an opportunity to comment on the situation.  This amounted to a breach of good faith and an award of $4,500 compensation for the breach of process.  No lost wages were awarded as the redundancy was genuine and the employee would have lost their job anyway.

If you need help getting the redundancy process right please give me a call on (04) 473 6850.