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Restructuring and Redundancy

 
 

Restructuring

Changes in the workplace can be driven by a number of factors some of which include responding to economic pressures, changes in the marketplace, a business decision to sell or contract out, or product and service changes.

Guidelines to help in managing this process are available in the Guide to Restructuring.

Redundancy

A redundancy happens when an employer ends an employee’s employment because:

  • a position filled by an employee is no longer needed, or
  • the employer has made a genuine decision for commercial reasons to discontinue employment.

An employer must have a genuine work-related reason for a redundancy.  These include:

  • cutting staff numbers to increase business efficiency
  • restructuring business operations, including a change in the organisation’s roles or location
  • closure of the business
  • outsourcing, and
  • sale of the employer’s business.

This section provides information for employers and for employees who are facing a redundancy situation, and information on the services and support available to them. More detailed information on the main steps in the redundancy process can be found in our Guidelines for Employers and Employees.

There is some additional advice for employers and employees in a restructuring situation. Special rules apply to employees doing catering, cleaning, caretaking, laundry and orderly work in a restructuring situation.

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This page was last updated on: 18-Jun-2010 and is current.


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