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This book is only available in PDF format

Authors: Bronwyn Heenan, Rebecca Rendle
Published: 16 June 2016
Pages: 23

Introduction

There have been a series of significant cases determined by the Employment Court (Court) in relation to redundancy since 2010, starting with the case of Wang v Hamilton Multicultural Society1 and culminating with the Court of Appeal's decision in Grace Team Accounting Ltd v Brake.2

When assessing a decision to make a position redundant the Employment Relations Authority (Authority) and Court will assess:
  • the genuineness of the redundancy; and
  • whether the dismissal was carried out in a procedurally fair manner.

Following a series of decisions, the Court of Appeal confirmed in Grace Team Accounting v
Brake that the Authority and Court are entitled to inquire into the merits of a business decision. This is to enable an assessment to be made about whether the decision was what a fair and reasonable employer could have done in all the circumstances, as required by s 103A of the Employment Relations Act 2000 (the ERA).

This paper focusses on key decisions on selection processes, redeployment, and how the Authority and Court has applied the decision in Grace Team Accounting to the assessment of whether redundancy decisions were fair and reasonable.


______________________
1 [2010] NZEmpC 142.
2 [2013] NZEmpC 81; [2014] NZCA 541.
 

Content outline

 
  • Key provisions of the Employment Relations Act 2000
    • Good Faith
    • Test of Justification
  • Key cases
  • Good faith obligations regarding the provision of information
  • Amendment to the ERA
View contents page
Bronwyn Heenan 2016 Rebecca Rendle 2016
Bronwyn Heenan
Senior Associate
Simpson Grierson
Wellington		 Rebecca Rendle
Senior Associate
Simpson Grierson
Auckland

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