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Home / Business / Economy / Employment

When Hollywood meets employment law...

Herald online
4 Mar, 2010 10:30 PM3 mins to read

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Employment lawyer Bridget Smith is nzherald.co.nz's new employment law blogger, taking over from her colleague Greg Cain.

As I sat in the new George Clooney movie, Up in the Air, I thought that this could just about be considered work related.

The more cynical amongst you may wonder whether I followed that with the stereotypical lawyer thought - and which client can I charge this to?
- but let me assure you, by way of brief introduction, that I am not that kind of lawyer.

Without spoiling the film for those of you who haven't seen it and who still intend to do so, George Clooney plays a character whose job is to go into firms and make people redundant.

In his words, "I'm the guy you hire to fire people". George, or at least his character Ryan Bingham, loves his role as a "Corporate Downsizing Expert", not least of all because it means he travels a lot (stopping now - in case I spoil anything).

His plans are somewhat thwarted when a new graduate comes along, determined to revolutionise the redundancy industry. Her proposal, in limited detail to avoid spoiling the movie, is that redundancies don't require face to face contact and they can be done by video conference.

The movie has attracted attention, not just because it is the latest Hollywood film starring George Clooney, but because in the current economic climate, many people have experienced redundancies, either personally or via those close to them. Those people know first hand what an upsetting and unsettling time it can be for those affected.

There is little doubt that the notion of redundancy via teleconference, without warning, is unlikely to take off (a movie pun - watch the film, you will get it), in New Zealand.

While there is no set process for a redundancy, the Employment Relations Act 2000 requires consultation with potentially affected employees about a proposal, before any final decisions are made.

In addition, the common law makes it clear that consultation is more than notification and the process must not be a sham.

Basically, the process under New Zealand law requires an employer to provide potentially affected employees with a memorandum which outlines what is proposed and why.

The employees should be provided with sufficient information in order to be able to provide feedback on the proposal, including possible alternatives and this feedback, including any possible alternatives, must be considered by the employer prior to any final decisions being made.

So, New Zealand employees can breathe something of a sigh of relief. The chances of a Corporate Downsizing Expert (or Mr Clooney for that matter) beaming into your office, out of the blue, via video conference, and advising that you have been made redundant, are slim to none.

Certainly if your employer has any familiarity with employment law in New Zealand and wants to avoid litigation in the form of a personal grievance. Because the reality is, in that situation, even George Clooney would struggle to soften the blow.


Bridget Smith is an employment lawyer at Minter Ellison Rudd Watts

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