For employers who are navigating organisational change, a careful consultation process is often the focus. However, there are several employment issues that may come out of a restructuring process which need to be handled with care.
Employers looking to hire after restructuring process may have the following questions:
- Do we have to offer vacant roles to affected employees first?
- Can we hire externally if affected employees don’t have the skills and attributes for the new role?
- We want to advertise vacant roles immediately after a restructure – is this ok?
- Can we change the duties or requirements of a role after the restructure?
- Can disestablished roles be re-created later?
- Can we hire a contractor or fixed-term employee instead of filling a new role permanently?
- Do we need to consult with employees if we create brand new roles after the restructure?
For questions 1-3, the answer is generally ‘yes’. Employers in New Zealand must ensure all affected employees have been given a genuine opportunity to apply for roles they are qualified for as a part of their good faith obligations. This includes assessing whether employees can reasonably perform the role with training or support. If there are no redeployment obligations remaining, employers may decide to proceed to external recruitment.
Actions covered in questions 4-7 may be possible but will require a nuanced approach based on preceding restructuring exercise and the individual circumstances of each workplace. For example, more consultation may be required with affected employees. Engaging a contractor or creating new roles immediately after going through a restructuring process should be consistent with the overarching premise of the change management process which led to the company’s reorganisation.
For specific advice around hiring after a restructure, please get in touch with our team.
