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Home / New Zealand

<i>Your rights:</i> 'Sham' restructuring cost me my job

By Kate Hoyle of DLA Phillips Fox
10 Dec, 2006 03:59 AM3 mins to read

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KEY POINTS:

Q. I lost my job when my position was made redundant as a result of proposed restructuring. I was the only one who had to reapply for my job although a number were affected by the planned changes.

I was unsuccessful and was given different reasons at different
times. All stated criteria were abundantly met and no reasonable redeployment option was offered. There was no redundancy; a small exit package was negotiated.

After my departure it was more than six months before a replacement was appointed; the person had not previously worked in a management role and met none of the stated key criteria including those I was given for my lack of success. I have recently learned that the restructuring has never taken place. Do I have redress in the light of recent information?


A. The company's restructuring of your position sounds like a sham. If your position was only affected to a minor extent your employment should not have been terminated for reasons of redundancy.

You could raise a personal grievance against the company for unjustified dismissal and claim damages including reimbursement for lost income and compensation for loss of dignity and injury to feelings. Also, if you still wish to work for the company, you could claim reinstatement to your position (reinstatement is the primary remedy under the Employment Relations Act 2000).

But there is a 90-day statutory time limit in which you can raise a grievance. This time limit runs from the date of the company's action that caused you the grievance (ie the date your employment ended) or the date when the company's action first came to your attention if this was later.

There is also the issue of the exit package. If you agreed with the company to a full and final settlement of all claims against the company in return for an amount of money, you may be prevented from now making a claim against it.

You could argue that you didn't know that the company's restructuring was a sham until you found out that your position had not changed, so the time limit should run from the date of your replacement's appointment. But you had some concerns about the restructuring before your employment ended. So, the Authority is likely to decide that the time limit runs from the date your employment ended.

There are exceptions to the 90-day rule that may apply to your situation. These include circumstances where you were too traumatised by the company's actions to properly consider raising the grievance within the timeframe. You will need to meet with an employment lawyer or advocate to determine whether any of the exceptions to the 90-day rule apply to your circumstances.

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