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Employment Relations: Employment agreement builder

Section 12: Restructuring

There is a requirement to include in an employee’s agreement a clause that explains the process to be undertaken where all or part of an employer’s business is transferred to a new employer, resulting in the loss or potential loss of an employee’s job, including the conditions on which an employee might transfer to the new employer.

Employees in some industries have a legal provision dealing with these matters. When you entered this agreement builder you were required to identify if your employees were undertaking particular tasks in the designated industries. If you are uncertain of the selection you made you can call 0800 800 863 for assistance.

There is no legal requirement to include general redundancy clauses in employment agreements, although including such clauses can give certainty to employers and employees when the changing amount or nature of work in an enterprise makes some or all employees surplus to requirements.

Restructuring



1a - In the event that all or part of the work undertaken by the employee will be affected by the employer entering into an arrangement whereby a new employer will undertake the work currently undertaken by the employee, the employer will:

Employer to provide information and consider comments in restructuring situations
 
meet with the employee, providing information about the proposed arrangement and an opportunity for the employee to comment on the proposal, consider and respond to their comments.
Employer to establish group of affected employees, provide information and consider comments in restructuring situations
 
establish a group to represent employees who may be affected by the changes, meet with that group to provide information on the proposed arrangement and consider and respond to their comments.
Employer to use redundancy clause process in restructuring situations
 
use the process outlined in the redundancy clause below.


1b - The employer will negotiate with the new employer, including whether the affected employees will transfer to the new employer on the same terms and conditions, and will:

Employer to require offer of similar position in restructuring situations
 
include in the agreement reached with the new employer a requirement that the employee be offered a position with the new employer at the same or similar terms of employment.
Employer to require offer of negotiable position in restructuring situations
 
include in the agreement reached with the new employer a requirement that the employee be offered a position with the new employer, at terms and conditions to be negotiated by the new employer and the employee.
Employer to use best endeavours to secure offer in resturucturing situations
 
use best endeavours to secure the new employer’s agreement to offer employment to the employee.
Employer to provide employee opportunity to discuss options with new employer in restructuring situations
 
provide the employee with opportunities to meet and discuss their employment options with a new employer.


1c - Where the employee either chooses not to transfer to the new employer, or is not offered employment by the new employer, the employer will:

Employer to activate redundancy provisions if employee not transferred to the new employer
 
activate the redundancy provisions of this agreement.
Employer to give employee priority access to other positions if employee not transferred to the new employer
 
give the employee priority in accessing other positions within the workplace.
Employer to provide access to counselling if employee not transferred to the new employer
 
during their period of notice provide the employee with access to employment counselling.
Employer to allow paid absence for job search and job interviews if employee not transferred to the new employer
 
allow the employee absense from work on pay to undertake a job search or attend job interviews.
Employer to provide retraining allowance if employee not transferred to the new employer
 
allow provide a retraining allowance of .
About OER | Department of Labour, May 2006. © The Crown