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Redundancy must be more than a business decision – judge

It has been confirmed the Employment Court can inquire into the business case behind a redundancy to see if it is genuine.

Confirmation, with major implications for employers, is found in the recent judgment of Employment Court Chief Judge Graeme Colgan, who found the rationale behind a Hawke's Bay farm’s decision to make a farm worker redundant did not stack up.

In Totara Hills Farm v Davidson, Judge Colgan found it was not enough for Totara Hills Farm to simply say Hamish Davidson's redundancy was a genuine business decision.

 

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