Restructuring and Redundancy

 

 

Restructuring is sometimes inevitable in business, often as a result of a downturn but sometimes also as a consequence of growth. A restructuring process may or may not involve redundancies but no matter what changes are planned it is vitally important to communicate properly to everyone involved.

 

Many people really struggle with change and anyone who runs a business knows that change is something that must happen from time to time for a business to evolve and keep pace with competitors.

 

Once a business owner or board of directors has set-out a restructuring plan there is a need to communicate and consult with affected employees. As with all employment processes, the more you can offer in terms of written information- the better. The best way to handle restructuring properly is to provide a document with all the proposed changes clearly described, preferably by using flow charts. It should be very clear who is affected and what the possible options are. If a particular job is on the line it is important that the person affected can seek advice. The document should lay-down a time-frame for consultation from all affected staff, allowing them a genuine chance to offer you other options. We have been involved in restructuring processes where the entire plan has changed after consulting staff, often they have great insights to offer.

 

Once the consultation process is complete there is an obligation to abide by the termination or redundancy clauses in your employment agreement. Once again communication and allowing affected staff opportunity to consult representatives is very important.

 

Often we are brought in to run the process, or at least to provide the necessary paperwork and advice. If your reasons are genuine there should be nothing to fear about restructuring your business, provided you run a fair and open process. Give us a call on 0800 00 3836 if you would like to discuss how we can ensure you have no hangover afterwards.