ANNEXURE 74 GENERIC REDUNDANCY PROCESS This process should be read in conjunction with the provisions of the National Employment Standards, redundancy clauses contained within award(s) or agreements for award employees or letters of offer for award free employees. Once it has been identified that there is a need for organisational change, which may impact on the employment of the affected employee(s), the following steps need to be undertaken in sequential order: 1.1 Have a meeting with all employee(s) As this is not a disciplinary meeting you are not obliged to forewarn the employee(s) about the meeting nor are they entitled to have a support person present. During the meeting: (a) (b) Advise the employee(s) of the situation e.g. why there is a need to consider change, restructure etc. Advise employee(s) that the employer will be meeting individually with employee(s) to discuss the impact of the situation on their employment. 1.2 Have individual meetings with affected employee(s) During the meeting explain to the employee(s) the alternatives the employer has come up with including the impact such alternatives will have on the employee(s) employment with the employer. (a) (b) Give the employee(s) a letter outlining the proposed changes. See attachment 1. Adjourn the meeting for no less than one week to allow the employee(s) to consider their options and to seek advice. 1.3 Where applicable send a letter to the relevant Union Notifying the union of the employee(s) who may be affected by the proposed changes. While you are only obliged to notify the Union once a definite decision has been made, it is suggested that notification be made either simultaneously with or immediately after the first meeting with the employee(s). It is inevitable that the employee(s) will contact their Union and it would be better for the employer to have gotten in first. See attachment 2. Annexure 74 version 01012011 page 1
1.4 Have the second meeting with the affected employee(s) individually During this meeting give the affected employee(s) an opportunity to provide their decision in respect to the alternatives put to them in the first meeting and answer any questions they may have. 1.5 Advise the affected employee(s) of the final decision The employee(s) should be notified both verbally and in writing. Depending upon the circumstances, also advise the employee(s) union. See Attachment 3 1.6 Implement the decision in accordance with award, letter of offer and legislative requirements Please do not hesitate to contact HR if you require further assistance with a redundancy. Annexure 74 version 01012011 page 2
ATTACHMENT 1 - DRAFT LETTER TO EMPLOYEE(S) WHOSE ROLE IS PROPOSED AS BEING MADE REDUNDANT BY HAND [insert employee s name] [insert position title] [insert name of employer] C/- [insert employee s postal address] Dear ORGANISATIONAL CHANGE We write with respect to our meeting of today s date and to iterate the matters that were discussed. As advised, after having undertaken a [insert what has been undertaken], we are seeking an [insert what you are seeking to achieve]. While no definite decision has been made, one possibility is that unless an [insert what you want to achieve] is found, the organisation will [insert what will happen]. Should this occur, your position within the organisation will no longer exist and consequently you may be retrenched. With the above said, we are of the view that the following options exist: 1. become redundant and receive all entitlements in accordance with the [insert name of award or organisation s redundancy policy]; or (if applicable) 2. [insert an alternative such as applying for any new positions that may have been created as a consequence of the organisational change] So that you have a proper opportunity to give consideration to this matter and to seek advice, we will not meet with again until [insert date 7 days from the date of the letter]. The meeting will take place at [insert time]. We look forward to our next meeting and being advised of your decision. Annexure 74 version 01012011 page 3
ATTACHMENT 2 - DRAFT FIRST LETTER TO UNION Branch Secretary [insert name of union] Dear Sirs: NOTIFICATION OF PROPOSED ORGANISATIONAL CHANGE In accordance with the National Employment Standards and clause [insert number and name of award], we write to advise that we are considering a proposed organisational change to our organisation. While the employees were verbally provided with details of the proposed change during a meeting held on [insert day, date and time], they were also given written details at the conclusion of the meeting, a copy attached. A further meeting has been scheduled for [insert day, date and time], at which time we hope to obtain further input from them. Should you wish to discuss this matter further, please do not hesitate to contact the undersigned on [insert telephone number]. Annexure 74 version 01012011 page 4
ATTACHMENT 3 - DRAFT LETTER TO EMPLOYEES BEING MADE REDUNDANT BY HAND [insert employee s name] [insert position title] C/- [insert employee s postal address] Dear [insert employee s name] ORGANISATIONAL CHANGE We write with respect to our recent discussions regarding the organisational changes to [insert name of organization]. We confirm our offer of redundancy and acknowledge that you have accepted that proposal. As discussed, you will receive a payment for all accrued but untaken leave, [insert number] week s severance pay and [insert number] weeks payment in lieu of notice on your last day of employment, which will be [insert last working day]. (delete entitlements that are not applicable and add those that are) Thank you for your cooperation throughout this process. While we trust that your time with us has been enjoyable and of benefit, please do not hesitate to see me should you wish to discuss any aspect of this matter further. We wish you all the best for the future. Annexure 74 version 01012011 page 5
ATTACHMENT 4 - DRAFT LETTER TO UNION Branch secretary [insert name of union] Dear Sirs: NOTIFICATION OF REDUNDANCY DECISION In accordance with the National Employment Standards and Clause [insert number and name of award], we write to advise that a definite decision has been made to retrench our employees [insert names]. As a consequence of that decision, the employees will cease to be employed on. A meeting with the employees was held on [insert day, date and time]. The employees have been advised of the decision and have been given a letter, a copy of which is attached. Should you wish to discuss this matter further, please do not hesitate to contact the undersigned on [insert telephone number]. Annexure 74 version 01012011 page 6