Running a restructure consultation (NZ)
A guide to managing a restructure consultation process in New Zealand, including MyHR's restructure support workflow
Contents
Before you begin - identifying the business reason for change
How to request support in the MyHR platform
What happens during the restructure consultation process
FAQs, troubleshooting, tips & tricks
How long should a restructure consultation process take?
Has the decision already been made before consultation?
Can employees bring a support person to consultation meetings?
Can an employee bring another colleague to consultation meetings?
What happens if employees disagree with the proposal?
Can the restructure proposal change during consultation?
What happens if a role is disestablished?
Does MyHR attend the meeting with employees?
What other resources are there for restructure consultation processes?
Overview
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A restructure consultation process may occur when a business is proposing to make changes to how work is organised. This may include creating new roles, changing reporting lines, combining duties, or disestablishing roles that are no longer required.
- It can be commonly misunderstood that a restructure always results in the disestablishment of a position or redundancy, however this is not the case.
- Redundancy may occur when a position (not a person) in your business is surplus to the ongoing requirements of the business and the position is disestablished. Redundancy only occurs following a restructure which requires consultation with any affected employee, and if redeployment is not possible or appropriate.
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In New Zealand, restructures that may affect employees must follow a fair consultation process under the Employment Relations Act 2000, which requires employers and employees to act in good faith.
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During consultation, employees must receive enough information about the proposal and have a genuine opportunity to provide feedback before any final decision is made.
The MyHR team can support managers throughout the process by providing guidance, preparing documentation, and helping ensure the process is managed in line with New Zealand employment law and best practice.
As a general overview, the following steps will apply:
| Step | High level action |
| 1. Identify the business reasons for change | Before beginning a restructure process, the employer must identify the genuine business reason for the proposed changes |
| 2. Submit a restructure request in MyHR |
To begin the process, submit a HR Services request in MyHR and select Restructure as the request type. Provide as much information about the proposed changes as you can , including what you're proposing to change, and why. |
| 3. Prepare the restructure proposal | With support from the MyHR team, prepare the documentation required for consultation. |
| 4. Begin consultation with affected employees | Affected employees must be invited to a consultation meeting where the proposed changes are explained. |
| 5. Allow time for feedback | Employees must be given a reasonable opportunity to provide feedback on the proposal. |
| 6. Consider employee feedback | The employer must genuinely consider the feedback received before making any final decision |
| 7. Communicate the final decision | Once feedback has been considered, the employer will communicate the final decision to affected employees. |
| 8. Confirm next steps | If roles are affected, the MyHR team will assist with the required documentation and guidance for the next stage of the process. |
Visit our Process Map: How to restructure your business in New Zealand knowledgebase article for a detailed outlined.
Step-by-step instructions
Before you begin: Identifying the business reason for change
Before beginning a restructure process, the employer must identify the genuine business reason for the proposed changes. This could include operational changes, financial pressures, or changes in how work is organised or delivered.
While preparing proposal documentation, we will be looking to clearly explain:
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why the changes are being considered
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what roles or teams may be affected
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what the proposed new structure looks like.
How to request support in the MyHR platform
To begin the process, submit a HR Services request in MyHR and select Restructure as the request type.
- Log into MyHR and select HR Services.
- Select Restructure
- If one role is potentially impacted, select the incumbent's name.
- If multiple roles may be impacted, select the most senior incumbent's name. Consider which managers will have visibility of the request submitted when deciding who to submit the request under.
- In the following form, describe the circumstances which have led you to consider a restructure in as much detail as possible.
The MyHR team will review the request and provide guidance on the next steps. This will include support with the documentation required for consultation. his may include:
What happens during the restructure consultation process
Once a restructure request has been submitted, the MyHR team will prepare the restructure proposal and supporting documentation. They may contact the manager if further information is required.
The manager will be provided with draft notification documentation outlining the proposed changes, along with a script to support the consultation meeting.
Where multiple employees are impacted, this will be provided as a template, enabling the requesting user to populate individual employee details (such as names, roles, and any other relevant information) before meeting with affected employees.
The manager will then meet with impacted employees to explain the proposed changes and allow time for employees to ask questions and provide feedback.
After feedback has been received and carefully considered, the manager will decide on the structure going forward. The MyHR team will assist with the documentation and scripts needed to communicate and confirm the outcome.
Depending on the outcome, this may include changes to roles, redeployment discussions, or the disestablishment of roles.
FAQs, troubleshooting, tips & tricks
How long should a restructure consultation process take?
The length of a consultation process can vary depending on the complexity of the proposed changes. Employees must be given a reasonable opportunity to review the proposal and provide feedback before any final decision is made.
The MyHR team will help ensure appropriate timeframes are provided during the consultation process.
Has the decision already been made before consultation?
No. Consultation must be genuine. This means the employer must present a proposal, not a final decision. Employees must have a real opportunity to:
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ask questions
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provide feedback
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suggest alternatives.
The employer must carefully consider that feedback before making a final decision.
Can employees bring a support person to consultation meetings?
Yes. Employees may bring a support person or representative to consultation meetings if they wish.
This may be a friend, a family member, union representative, or another person chosen by the employee.
Can an employee bring another colleague to consultation meetings?
Yes. An employee can bring a colleague as their support person, provided the colleague is available and willing to attend.
Employers can remind both the employee and their support person that restructure processes are confidential, and that any information shared during the meeting must not be discussed with others. This is particularly important where sensitive business information or details about other employees may be involved.
What happens if employees disagree with the proposal?
Employees are encouraged to provide their feedback during the consultation process. Employers must genuinely consider all feedback before making a final decision.
In some cases, the proposal may be adjusted based on the feedback received.
Can the restructure proposal change during consultation?
Yes. Proposals may change during consultation if feedback or new information suggests that adjustments should be made.
Employers should communicate any updates to affected employees and allow them time to consider the changes.
What happens if a role is disestablished?
If a role is disestablished after consultation, the employer must follow a fair and reasonable process before ending employment.
This includes:
- Considering redeployment opportunities within the organisation and discussing any suitable alternative roles with the employee
- If multiple employees are affected, applying a fair and objective selection process for any remaining roles
- Providing the employee with notice of termination in accordance with their employment agreement.
- Paying any final entitlements, including outstanding wages, annual leave, and any applicable redundancy compensation (if provided for in the employment agreement).
Does MyHR attend the meeting with employees?
No. MyHR does not attend consultation meetings with employees.
However, we provide you with the advice, guidance, and tools needed to confidently run these meetings yourself. This includes tailored support and scripts to guide the conversation, helping ensure the process is handled appropriately and in line with good faith obligations.
If you would prefer in-person or direct support, we can arrange a referral to one of our external HR partners who can assist with attending meetings.
What other resources are there for restructure consultation processes?
Learn about restructuring & redundancies on the MyHR website.
Support options
If you need more help, our HR team is always here for you. If you have questions, message the MyHR team via the Ask Us chat feature or call us on 0800 69 47 69 (0800 MY HR NZ) or +64 9 887 3345