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The importance of consultation during a redundancy process

In a recent Employment Relations Authority decision, an employee, who was a CEO of a large company, was awarded $10,000 compensation for hurt and humiliation due to a lack of consultation during a redundancy process.

The Authority held that the actual redundancy was genuine and that the employee’s position was “terminated for genuine commercial reasons.”  However, the company failed to adequately consult with the employee before it made a decision to make her redundant.

This case shows how important it is to ensure that employees are properly consulted and given an opportunity to provide input during a redundancy process.

For advice on how to ensure your employees are appropriately consulted and on how to carry out the proper process, please feel free to call Alan Knowsley.