Restructuring business and managing redundancy
Business agility relies on organisations being able to adapt and evolve quickly, to shift the balance and focus of resources as befits need – it’s a seemingly never-ending cycle of growth, restructure and transformation.
If your organisation is planning change, it’s vital that you consider the implications on your workforce. There are obviously financial and reputational risks to be considered and managed carefully. But beyond this, a reorganisation programme that affects people’s lives and livelihoods requires sensitive and informed handling.
365 Employment Law advises on the employment aspects of business restructure. We have expertise in managing the consultation process, TUPE and collective redundancies and give practical, consultative advice to managers and HR teams in relation to:
- Changing terms of employment
- Redundancy including selection and redundancy payments
- Restructures and reorganisation
- Redeployment and alternative roles
- Settlement agreements
In organisations with 50 or more employees, employees have a legal right to be informed and consulted, with a view to reaching an agreement, on decisions likely to lead to substantial changes in work organisation or contractual relations
If a formal agreement exists, you must inform and consult employees about:
- the economic situation of the business
- job prospects
- major changes in how work is organised
Where a formal agreement does not exist, you must inform and consult employees about:
- plans to sell the business or buy a new one
- amendments to an occupational or personal pension scheme
- 20 or more redundancies in any 90-day period at any single place of work
During the consultation period, you should meet with affected employees and obtain their opinions on the planned reorganisation along with their views on how redundancy may be avoided, or its effects mitigated. You should give conscientious consideration to any points raised.
You must follow ‘collective consultation’ rules if you’re making 20 or more employees redundant within any 90-day period at a single establishment. We advise HR departments in managing the process.
There are no set rules to follow if there are fewer than 20 redundancies planned, but it’s good practice to fully consult employees and their representatives.
For a potential redundancy situation to be fair (and legally compliant), you must:
- consult on ways to avoid the redundancies
- select employees to be made redundant fairly
- identify and offer suitable alternative employment, where possible
For confidential conversation about any planned restructure or redundancy, telephone 01903 863284 or use the contact form to detail your requirements.