Restructuring and redundancy processes continues to be a common necessity for organisations adapting to changing market conditions and continuous technological advances. If you are an employer proposing to restructure your business, SAS Daniels’ employment law and HR team can support you at every stage of the process.
Essentially, redundancy is used to describe a situation where an employer decides it needs to reduce the number of its employees, either within the business as a whole, or within a particular job role. An employer may decide to make redundancies for a variety of reasons, including:
- Recession or other economic pressures
- Changes in the nature of products or services provided
- Internal re-organisation
- Technological developments
- Relocation of the business
Key steps to follow in the restructuring and redundancy process
The law in this area allows for a great deal of common sense. Employers have a degree of flexibility to deal with restructuring and redundancy processes in a way that suits their business. You can set your own timetable for this process, provided this is done fairly and in accordance with some key requirements:
- Until any decisions have been made you are only proposing to make redundancies. This is crucial, as problems can arise if employees argue that any decision to make them redundant was prejudged before a thorough and fair redundancy process was undertaken.
- Make sure those affected are given all the relevant information in relation to the proposal and adequate time to consider that information.
- During consultations you must also ensure that you show conscientious consideration to any suggestions your employees raise to avoid the redundancy situation. For example, the possibility of suitable alternative employment within the company.
If you are proposing to make 20 or more employees redundant, or if you have a contractual redundancy policy then the rules may be different and it’s important you take legal advice on the matter before any action is considered.
How SAS Daniels can help you
Our team members are specialists in advising organisations through the restructuring and redundancy process. We can guide you through each and every step of the process in order to make what can often be a stressful situation as simple as possible.
As well as advising you how to conduct the process properly, we can also offer you on-site training and support during the consultation process and provide you with all the relevant documentation you may require.
For more information about managing redundancy and company restructuring, please contact our team below and we will be happy to help. Alternatively, you may also fill out our contact form and we will get in touch as soon as possible.
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