Selection order for dismissals and layoffs in detail
In general, employment contracts should only be terminated for a valid reason, such as misconduct, poor performance or redundancy, in good faith, and not on discriminatory grounds. The employer is required to follow a ‘hearing procedure’ before making any final decision regarding the termination. Legal advice should be taken on the specific requirements in this regard.
If collective relations exist and/or a collective bargaining agreement applies, a specific termination procedure may need to be followed. In addition, if the employer has a specific disciplinary or performance management policy that applies to the circumstances, or there are other related terms in the employee’s contract of employment, this should be followed prior to considering dismissal.
There are also circumstances in which it is prohibited to dismiss an employee at all, or not without a permit from the Ministry of Labour. Such circumstances include where an employee is on parental leave, army reserve duty, or undergoing fertility treatment, and for certain periods thereafter, and during paid sick leave.
Author: Herzog Fox & Neeman
Date: December 2019