Restructuring Done Right

Restructuring Right: Michael’s Advice on a Hot Topic for Employers

Fairness first in tough times

At Business Canterbury, we’ve seen a noticeable increase in queries from members around restructuring. With the still very challenging economic environment, it’s no surprise - many businesses are having to make difficult decisions about the shape of their workforce.

That’s why it’s more important than ever to ensure restructure proposals are handled in a fair and reasonable way. Having an open mind to staff feedback, allowing reasonable timeframes, and seeking independent legal advice are all essential. Just as important is having a sound business rationale, backed by figures such as revenue trends, falling profitability, or rising costs.

Key Steps for a Fair Restructure - What employers need to consider

• Start with communication – Invite staff to a meeting via a formal letter to explain the proposed restructuring.

• Present it as a proposal, not a decision – Make clear that it is a genuine proposal for change.

• Outline the rationale – Be transparent about why changes are needed (e.g., cost savings, efficiency, shifting demand).

• Provide detail – List what the proposed changes involve, including any roles at risk.

• Explain criteria – If positions may be disestablished, share the selection and recruitment criteria.

• Consider alternatives – Explore retraining and redeployment before redundancy.

• Set clear timeframes – Allow at least 7–10 working days for staff feedback.

• Highlight support – Advise employees of their right to seek independent legal advice.

• Be clear on process – Explain how feedback can be given (e.g., email, written submission), who it should go to, and by when.

• Close the loop – Meet with affected employees to report back on feedback and confirm whether the proposal (or a modified version) will proceed.

Resources to guide your process

Our Restructuring and Redundancy Toolkit is available to members at a special price of $400 + GST if purchased this month. It includes templates, guidance, and checklists to help reduce risk and ensure compliance.

Members also have access to one-on-one advice and guides through Business Canterbury’s HR Advisory team.

A process that protects people and business

Restructuring is an area we’re getting a lot of questions about right now. It’s not easy, but when it’s backed by a clear rationale and handled with fairness and transparency, it can protect both the future of the business and the dignity of the people affected. Cutting corners, on the other hand, can expose employers to costly claims and lasting damage to trust.

We Can Help
If you’re considering a restructure, don’t go it alone. Our HR Advisory team is here to support you with practical advice, tailored guidance, and the tools you need to get it right.

👉 Contact Michael Prisk at michaelp@cecc.org.nz or reach the team at hradvice@cecc.org.nz.