When businesses in New Zealand face challenging times, one of the earliest indicators we observe at the EMA is a surge in restructure-related queries to our AdviceLine team.
Sarah Lim
Over the past two years, this trend has remained steady, reflecting the reality that many organisations are under significant financial pressure.
Members consistently tell us the same story: the economy is sluggish, their revenue streams are tightening, and cost-saving measures have become unavoidable. For many, restructuring is seen as the most practical solution to ensure survival and sustainability.
Employers across New Zealand understand that restructuring is not a decision to be taken lightly. It involves a detailed, legally compliant process where every step must be both procedurally and substantively fair. This means that before any final decisions are made, businesses must have a sound commercial rationale for the proposed changes and follow a transparent, consultative process. One critical component of this process – often underestimated – is the consideration of redeployment opportunities before redundancies are confirmed.
Recent Employment Relations Authority (ERA) decisions highlight a growing emphasis on redeployment. The Authority is scrutinising whether employers have genuinely explored all possible alternatives to redundancy, particularly opportunities for redeployment. This is no longer a mere formality or a box-ticking exercise. Redeployment is now recognised as a distinct and essential step in the restructuring process, requiring employers to actively assess and consult on all available roles before making any final decisions.
So, what does this mean in practice? If you are contemplating a restructure or are already in the midst of one, you must carefully review whether there are roles within your organisation that affected employees could reasonably perform – either immediately or with reasonable training and upskilling. If such roles exist, redeployment should be offered as a priority. For businesses operating as subsidiaries, this obligation may extend beyond national borders. For example, if your New Zealand team works closely with an Australian head office, consider whether suitable opportunities exist there as well.
Active engagement with employees throughout this process is vital. Employers should invite feedback on potential redeployment options and follow up if none is provided. Encourage employees to suggest roles they believe they could perform and discuss these ideas openly. If vacancies exist but you believe an employee is unsuitable, explain your reasoning clearly and invite comment. This dialogue demonstrates good faith and ensures compliance with consultation obligations. The overarching principle is simple: keep an open mind, explore every alternative to redundancy, and maintain transparent communication at every stage.
Ultimately, redeployment is about more than compliance – it reflects a commitment to supporting staff during times of uncertainty. By approaching this process thoughtfully and proactively, employers can reduce risk, maintain morale, and uphold their reputation as fair and responsible organisations.
