Hiring After Redundancy

Hiring after redundancy is a legally sensitive area in New Zealand. It’s critical to ensure that new hiring does not undermine the redundancy process or expose your business to personal grievance claims.

Legal Considerations

• Genuine Redundancy → Redundancies must be for genuine reasons (e.g., restructuring for commercial viability, technological change).

• Good Faith → The process must be open, transparent, and consultative.

• Risk Area → Hiring into a similar role soon after redundancy can spark claims if redundancy was not genuine.

From Liability to Leadership

Moving from reactive decision-making to proactive workforce planning lets you restructure confidently, maintaining team trust while meeting business needs.

Practical Safeguards

• Business Case Documentation → Keep detailed records of the rationale and consultation process for the redundancy.

• Gap Analysis → If hiring after redundancy, ensure the new role is demonstrably different in duties, skill level, or hours.

• Timing → Allow a reasonable gap or have a clear operational justification.

Action Steps for Employers

• Engage HR advisors before making post-redundancy hires.

• Ensure all restructuring decisions are supported by solid evidence.

• Communicate openly to protect your employer brand.

Get expert advice to protect your business and maintain compliance—contact us today.