Making the tough decisions | Redundancy
Updated: Oct 9
With the country facing into a recession now more than ever businesses are having to adapt and change to financially survive. With that comes some of the toughest decisions as an employer or business owner you may have to face making, Redundancy(ies).
Understanding your real time cashflow and forecasting the company workflow is important to ensure you have the confidence to make decisions quickly so you know when it’s time to act.
We’re here to help you run the numbers and ensure you have your financial plan in place so you can make the tough decisions before the situation exacerbates.
To undertake a fair redundancy process you need to have genuine reasons for considering making employees' positions redundant, implement a fair consultation process giving employees an opportunity to provide feedback, pay employees who will lose their jobs redundancy compensation (if required under their employment agreement) and their accrued holiday pay, and provide those employees with the required period of notice and references or certificates of service.
If you are considering restructuring your business the process you follow can have a huge impact on how exiting staff feel about the way they were treated. Disgruntled employees who feel they were mistreated during a redundancy process may be more inclined to raise a personal grievance. The morale amongst remaining staff will also be affected if redundancies are not handled sensitively.
At the time you identify the possibility of redundancies you should consider obtaining legal advice from an employment lawyer.
For more advice or support in making financial decisions talk to Grace Team Accounting | Tauranga Accountants because we’re here to help.