Changing the organisational structure, whether through restructuring, reorganising, downsizing or streamlining operations, is inevitably a complex process, involving considerable legal risk.
Where the change involves reduction of headcount, changes in organisational roles or redundancy, employers have to ensure they are following the correct legal procedures and meeting employees’ rights.
Taking specialist advice from the outset can help protect your business from the employment risks of restructuring, including potential unfair dismissal claims and employment tribunal proceedings.
Restructuring: employment legal advice
Our employment law advice supports the corporate elements of any restructuring process. We will first look to understand the wider commercial objectives that are driving the change, whether it is cost-cutting, to improve operational or tax efficiency or in preparation for a sale or acquisition.
We then look at strategies, implementation and overall legal risk management relating to the human resource aspects of the programme. This includes assessment of all other potential courses of action to avoid termination of contract:
- Redeployment – are there alternative, suitable roles within the organisation that can be offered to ‘at risk’ employees?
- Voluntary redundancy – if enough employees volunteer for redundancy, this could reduce or potentially negate the need for the compulsory redundancy process? Or where too few employees volunteer, the compulsory process will need to be followed nonetheless.
- Outsourcing – if parts of the business are to be outsourced, will this trigger TUPE if employees are to transfer to the new employer?
Where redundancies are unavoidable, we provide specialist advice to ensure legal compliance through a fair, competitive selection process.
Need assistance?
DavidsonMorris’ employment law solicitors are experienced in advising companies on the people-related risks of restructuring programmes.
With substantial experience in company reorganisations, our lawyers understand the importance of commercial drivers and the sensitivities surrounding organisational change and restructuring decisions, delivering advice that is pragmatic, commercially viable and legally compliant.
We can guide you through the legal process of reorganising, restructuring or making redundancies, to ensure continued compliance, risk mitigation and supporting fair treatment of affected employees.
We can advise your HR and management team on all aspects of restructuring, from programme strategy, design and implementation, to include:
- Examining all potential HR strategies and solutions to support the organisational change e.g. redeployment of personnel, use of voluntary and/or compulsory redundancies, outsourcing and TUPE implications
- Identifying which employees will be affected
- Identifying who to inform and consult with e.g. employees, trade unions, employee representatives
- Guidance through redundancy process including consultations, notice periods, pay & leave entitlements
- Drafting legal documentation such as settlement agreements
Contact us for specialist advice.
