We advise our clients on the planning and implementation of restructuring and redundancy strategies to ensure that business objectives are accomplished with minimal legal risk.
If your business is planning on restructuring and making necessary redundancies, it can be a daunting process as employers will need to ensure that they follow the correct procedures and apply them fairly ahead of making any dismissals.
What is redundancy?
A genuine redundancy situation can arise in any business in three types of situation: a business closure, a workplace closure, and a reduction of workforce. The latter is a common occurrence following a business restructuring, as this can often lead to a reduced requirement for employees to carry out work of a particular kind.
Redundancy and unfair dismissal
Even if your business has a genuine redundancy situation, a failure to follow a fair redundancy process could lead to your employees pursuing successful employment tribunal claims against your business.
A dismissal by reason of redundancy is likely to unfair unless the employer:
- Identifies an appropriate pool for selection
- Consults with individuals in the pool
- Applies objective selection criteria to those in the pool
- Considers suitable alternative employer, where appropriate.
Even more prescriptive collective consultation obligations must be followed with elected employee representatives if your business intends to make 20 or more redundancies over a 90-day period or less. A failure to follow this process could lead to significant financial penalties for your business.
Let us help
We regularly advise businesses on redundancies and business restructures. Our team of specialist employment law solicitors can guide you through the process and advise on the best strategy for achieving your commercial aims and needs.
We can provide you with supporting advice by email and telephone or in person, together with checklists, policies and legally compliant documentation to support you through the process and to ensure your business avoids costly and time-consuming legal disputes and claims by your employees.