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Employment Law

Redundancy and restructuring

Redundancy and restructures should follow a fair process. Being clear from the outset of what you hope to achieve and why is essential.

 

What is redundancy?

Redundancy has a specific legal definition.

Briefly, it is where your requirements for someone to do particular work, or to do it in particular location, have ceased or diminished or will do so. A slightly wider definition applies for the purposes of establishing whether you need to collectively consult with employees.

 

What is a restructure?

Restructures don’t have a specific legal definition but cover any situation where you want to change the structure of your team. While many of the specific requirements that apply to redundancies don’t apply, it is generally sensible to follow a similar process.

In both cases you should follow a fair process which can entail appropriate consultation, considering pools for selection and fair selection criteria and giving employees an opportunity to challenge your proposals.

 

We advise on

  • Planning and making redundancies
  • Downsizing, expanding or restructuring your business
  • Changing the roles of individuals within departments or terms
  • Re-locating staff
  • Revising or updating employment terms and conditions

 

Redundancies during Coronavirus

We understand the financial difficulties facing your business at this unprecedented time. If you are concerned about cashflow and what will happen after the Coronavirus Job Retention Scheme (CJRS) comes to an end you may be thinking about making redundancies.

It is your choice whether to make redundancies, although the availability of furlough may be one factor that is considered if an unfair dismissal challenge is brought. You should therefore ensure that you have a good reason for dismissing an employee (which might e.g. be a reasoned assessment that your requirement for this role will have ceased / diminished for an extended period, not just on a temporary basis) and follow a fair process. You will also need to pay statutory redundancy pay to those employees with more than 2 years’ service who are made redundant. The process is considerably more complex if 20 or more employees are at risk of losing their jobs in the same place and you should consider seeking legal advice. 

 

Redundancy Support Pack

At Tozers our Employment Team have put together a fixed fee Employer Redundancy Pack to help you if you may be thinking about making redundancies. Our Redundancies Support Pack is designed to offer you essential, easy to understand advice and support to ensure that you follow a fair and lawful redundancy process and minimise the risk to your business.

Employer Redundancy Pack

 

Why choose Tozers?

We work with you to understand your needs and desired goals in a cost-effective manner.

We deliver results.

Our team has a wealth of knowledge in employment law and regularly speak at seminars and conferences as well as conducting training on topical issues.

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