Why restructures carry risk
Restructures affect livelihoods, team morale, and daily operations. Even when the business reason is genuine, a flawed process can lead to personal grievance claims.
We help employers plan restructures that hold up. The goal is a process your business can defend if challenged.
A well-run restructure protects the business and treats people fairly. Both matter.
Start with the business reason
Every restructure needs a genuine rationale. The Employment Relations Authority will test whether the reason was real. We help you document it clearly before anything else happens.
Common business reasons:
Lost contracts, reduced demand, or shifting export requirements.
Revenue decline or rising costs that affect viability.
Automation or new systems that change staffing needs.
A sale, merger, or succession that requires a new structure.
Key point:
Document the rationale in plain language before consultation begins. If you cannot explain it clearly, the process will be harder to defend.
Consultation is not optional
This is where most employers create risk. Consultation means genuinely engaging with affected employees before making a final decision. We guide you through each step.
- 1 Share relevant information. Explain the business reason, proposed structure, and which roles are affected.
- 2 Present a proposal, not a decision. Frame it as "we are proposing" rather than "we have decided." A predetermined outcome undermines the whole process.
- 3 Allow time for feedback. Employees need enough time to understand, seek advice, and respond. Rushing this step is the most common failure.
- 4 Consider alternatives genuinely. If an employee suggests a different approach, consider it properly. Document your reasoning either way.
Selection and redeployment
When some roles survive and others do not, selection decisions become critical. We help you set criteria that are defensible and fair.
- Selection criteria must relate to the role, not the person. Skills and business need are defensible. Personal preference is not.
- Explore redeployment before confirming redundancy. Offer alternative roles if they are reasonably suitable.
- Short-term training may be relevant if it allows someone to fill an alternative role.
Redundancy compensation
Redundancy pay is only required if the employment or collective agreement provides for it. There is no statutory right in New Zealand. Even so, the process must still be fair. Reasonable notice and support can reduce dispute risk.
Questions?
Our employment team helps you get the restructure process right from the start.
Get in TouchHawke's Bay context
Many local restructures arise from conditions specific to this region. The legal process is the same, but we understand the local context.
Orcharding and viticulture businesses may need to restructure after a poor season.
Project completion or funding changes can trigger rapid downsizing.
In businesses with fewer than 10 staff, redeployment options are limited. Process discipline matters more.
Ownership transitions in family businesses often require role changes that need careful handling.
What we do at this stage
We work alongside you through the full restructure process.
- We plan the process with you, including proposals, timelines, and communications.
- We advise on selection criteria and redeployment options.
- We draft consultation letters, outcome letters, and meeting documentation.
- We support mediation if a dispute arises from the process.
How we help
We help you build a restructure process that is fair, documented, and defensible. Get advice from us before you start.
Planning a restructure? We are happy to discuss your situation before you begin. Call us on 06 835 7394 or email mailbox@cardow.co.nz .
