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Surviving Tough Times

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.

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: 05-Jun-2009 and is current.


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Department of Labour.

05-Jun-2009