Check list
The following must be checked before any restructure process is commenced.
-
Do all Employees have up-to-date individual employment agreements (“IEA”)?
Are all current law changes, provisions and entitlements included in the Employee’s IEA’s?
We can help -
Do all Employees have up-to-date job descriptions?
Are the duties and responsibilities they actually perform in their current role substantially the same as their current job description?
-
If the Employees' IEA's have any of the following provisions pertinent to the restructure process
a. the notice period;
b. any redundancy compensation payable;
c. obligation on the Employer to redeploy or reassign the Employee in the case of a restructure/redundancy process; and/or
d. any specific contractually defined redundancy policy/procedure to
follow.
-
Does your business have any HR documents of policies in place as guidelines for a restructure/redundancy process?
-
Do you have any Collective Employment Agreements in place with any Unions?
A Collective Employment Agreement will usually contain detailed provisions setting out the process to be followed for restructuring and redundancy. This must be complied with strictly and your business must do so in good faith.
-
Has your business identified a "genuine reason" for restructuring?
This must be established before any position can be restructured in a procedurally fair manner. A genuine reason can include but is not limited to a reduction of head count, commercial/financial viability, organisational/structural/economic efficiency and/or superfluity of roles.
-
Does your business have a selection criteria for redundancy?
This applies to situations where there are more Employees than remaining available positions for a particular role, and numerous Employees who have applied are reasonably suitable for the new role. Selection criteria can also apply when choosing specific employees for redundancy out of a larger group of employees working in similar roles.
-
If receiving the Government wage subsidy, did your business apply before or after 4.00pm on 27 March 2020? (this will impact your obligations regarding redundancies)
We are still awaiting further details from the Government regarding the wage subsidy extension, so the question above may need amendment once these additional details are announced.