Why Communication Matters During Redundancy processes
Redundancies are never easy. For the people impacted, it can be distressing and disorienting. For those delivering the news, it can be emotionally taxing and legally complex. Yet how these conversations are handled has a long-lasting ripple effect, on your workplace culture, your legal risk, and the trust of your remaining team.
If you’re a business owner, CEO, or senior leader, facing redundancies, this guide will walk you through how to deliver the message clearly and authentically while staying compliant with New Zealand employment law.
Start with the Right Legal Foundation
Redundancy processes must be carried out in good faith, with proper consultation and a genuine business rationale. According to the Employment Relations Act 2000, employers are required to follow a fair and transparent process, including giving affected employees the opportunity to provide feedback on proposed changes before final decisions are made.
This means:
- Clearly outlining the business rationale for the proposed changes.
- Providing supporting information (be as detailed as possible here to evidence strength in your proposal).
- Giving the employee time to consider the proposal and respond
- Genuinely considering their feedback before making a final decision and communicating with them along the way
🔗 Need help designing a compliant restructure? Explore our Change & Restructures support.
How to Prepare for the Conversation
Before the meeting:
- Know your script: ensure you approach the consultation meeting with your people with an empathetic approach, while it is hard for you as the leader to deliver the news, it is harder for the staff member receiving the information, especially if they are potentially losing their job. Ensure you communicate with clarity and transparency.
- Have documentation ready: Include the change proposal, FAQs, and support resources. Remember people absorb information in different ways, verbally discussing it with them and then following up in writing is critical, some people may have initial questions while others need time to process so written documents are an important part of this process. It also allows them time to thoroughly read the information to provide feedback on it.
- Plan logistics: Choose a private, quiet setting with minimal interruptions for any meetings you need to have and ensure your team know they are entitled to have a support person present as well.
- Get support: It’s best to have another leader or HR consultant present if that is practical, this way your team know they have two people to go to for questions or support if needed.
Avoid vague language or overly casual delivery. Redundancy conversations must be handled with care, not confusion. Its also important not to be too ‘clinical’ or ‘robotic’ . this is usually a sign that you are uncomfortable, you know your people so take an empathetic approach, if you are nervous, just call it out, it’s ok – they are hard conversations but important ones to have for the business.
What to Say (And What Not To)
Do:
- “We’re proposing some changes to how our business is structured.”
- “Your role is one of the positions potentially impacted by these changes.”
- “No final decision has been made, we’re in the consultation phase, and we want to hear your feedback.”
Don't:
- “You’re being made redundant.” (This implies a decision has already been made)
- “Don’t worry, you’ll be fine.” (Dismisses the employee’s experience and infers predetermination of an outcome)
- “It’s nothing personal.” (Even if true, it can feel invalidating)
Words matter. Missteps in language can open the door to personal grievance claims or erode trust.
Offer Genuine Support
Being made redundant can be life-changing. Even if your legal obligations end at the notice period, your reputational obligations go further. Consider offering:
- Outplacement support: Including CV support, career coaching, and interview prep.
- Employee Assistance Programme (EAP): Reiterate access to counselling or wellbeing support.
- Extra notice or ex-gratia payments: A goodwill gesture can assist in the transition back to the job market and maintains goodwill.
Communicate With the Team, Too
After individual consultations are complete and decisions have been made, it’s vital to communicate with your remaining team. They’ll be wondering:
- Am I next?
- Is the business okay?
- What’s changing and why?
Be open and honest. Reinforce your strategic direction, acknowledge the difficulty of the decision, and share how you’ll support the team moving forward. This helps rebuild trust and employee engagement in a time of uncertainty.
A Few Final Tips
- Be human: People won’t remember every word, but they’ll remember how you made them feel.
- Be consistent: Mixed messages from leadership can create confusion and mistrust.
- Be available: Create space for follow-up questions or one-on-one check-ins.
And most importantly, don’t go it alone. Redundancy processes are legally and emotionally complex. Having an expert by your side can make all the difference.
Let’s Make a Tough Process a Little Easier
Restructures may be inevitable in business, but mishandled ones aren’t. If your business is navigating change, let’s talk. We’ll help you deliver the message with clarity, care, and confidence.