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  • We are receiving the wage subsidy.  I am considering a restructure  when we are open again.  Can I start a redundancy process during the 12 week period we receive the subsidy?

Question :
We are receiving the wage subsidy.  I am considering a restructure  when we are open again.  Can I start a redundancy process during the 12 week period we receive the subsidy?

Question submitted 14/04/20 @ 01:06pm
Industry: HR & Talent
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    Hi there,

    Yes you can initiate a change process now. You can initiate a change process anytime.

    You’ll still need to follow all the steps, giving ample notice, allowing opportunities to have support available, present the options, allow time to gather feedback, give time for consideration of feedback but there is no reason you cannot start it now.

    Your employees may even come back with other options e.g suggesting salary reductions, going on leave without pay so its good to have these discussions now.


    ngā mihi

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    I totally agree with Jada’s comments.

    In addition, just be conscious that you may need to pay back some of the subsidy if people exit prior to the 12 week period as you are no longer meeting one of the commitments when gaining the funding, which is using the subsidy to retain and pay your employees.

    More information on that can be found here – under the repaying section.

    https://www.workandincome.govt.nz/products/a-z-benefits/covid19-wage-subsidy.html#null

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