Effective Strategies for Redundancies and Business Restructuring
- Employment Law
- 20th Aug 2024
Navigating redundancies and restructuring in the current economy requires a comprehensive understanding of both legal obligations and strategic considerations. In this blog, we will explore fair redundancy procedures and statutory consultation obligations with the aim of mitigating risks and maintaining good industrial relations. Collective redundancies Redundancy procedures must be handled with care, especially when they […]
By Amy Jefferson
MLP Law
Navigating redundancies and restructuring in the current economy requires a comprehensive understanding of both legal obligations and strategic considerations. In this blog, we will explore fair redundancy procedures and statutory consultation obligations with the aim of mitigating risks and maintaining good industrial relations.
Collective redundancies
- Redundancy procedures must be handled with care, especially when they involve collective redundancies. This is defined as dismissing 20 or more employees within a 90-day period.
- Collective consultation involves informing and consulting with appropriate representatives (i.e. trade union representatives or nominated employees) about the proposed redundancies.
- Consultations should include discussions about the reasons for redundancies, the number of dismissals, and any measures to avoid dismissals, such as seeking volunteers for redundancy or offering suitable alternative employment.
Individual redundancies
- For individual redundancies, employers must ensure that each affected employee is consulted individually.
- Clear information about the selection criteria and any available alternatives to redundancy should be provided.
- Employers should also offer support, such as time off to seek new employment or training.
- Failure to follow a fair procedure can lead to claims of unfair dismissal.
Statutory obligations
- In addition to procedural fairness, employers must also consider the statutory rights of employees.
- This includes the right to a redundancy payment and the right to appeal against their selection for redundancy.
- The calculation of redundancy payments should be transparent, and any contractually enhanced redundancy packages should be clearly communicated.
Conclusion
Navigating redundancies and restructuring in the current economic climate requires a balanced approach that respects legal requirements and addresses the practical challenges faced by businesses. Employers must be diligent in their consultation processes and transparent in their decision-making during these changes.
For help and advice on navigating redundancies, please do not hesitate to contact our Employment team at employment@mlplaw.co.uk
About the expert
Amy Jefferson
Paralegal - Employment Law
Following the completion of her undergraduate degree in Law, Amy started her legal career at a trade union law firm based in Sheffield in September 2022.
Amy’s interest in legal practice began following a series of trips to the Manchester Crown Court public gallery with her Grandad. What started as a few day trips sparked a real interest in legal practice and a few years later she undertook work experience with a high street firm in Bramhall specialising in employment law.
This area was further explored during university by studying an elective module in employment law and completing a part time work placement in employment law alongside studies in her final year. After university, looking to explore her options she began working in personal injury. However, quickly missing the pace and range of employment law, she returned to the area and has found the work to be meaningful and rewarding.
In her spare time, Amy likes to attend live music events and go for walks in the Peak District.
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