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Are you prepared for a restructure or redundancy?

View profile for Chris Amys
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A Freedom of Information request to the Insolvency Service by the BBC shows that 10,000 employers plan to cut 795,000 jobs.

By comparison, 530,000 jobs were proposed to be cut during the last economic crisis, namely the recession in 2010.

It is important to emphasise these figures only represent employers who plan to cut more than 20 jobs, although we can safely assume that official figures from the ONS will be much higher.

Clearly these are terrible figures, but they would have been much worse had it not been for the Government’s Coronavirus Job Retention Scheme.

Nevertheless, at some point in the future, this scheme will come to an end. Although the scheme may change or be extended in the short-term beyond April 2021, this is not guaranteed.

Either way, businesses may need to consider the possibility of short-term working, lay-offs and/or redundancies. This is likely to become an issue again in the coming weeks and months.

If an employer is looking to make redundancies, the size of any proposed redundancies will dictate the minimum length of the consultation process. It could range from a week to up to 45 days. If employers get this wrong, employees may be entitled to compensation, as well as notice, holiday and redundancy pay.

Similar rules are also in place for those looking to restructure their businesses.

For those businesses looking to make any changes, they need to consider the date when any redundancies or restructures will take effect, to ensure that consultations can commence in good time.

Dealing with any redundancy or restructuring process can be daunting. However it is imperative that you follow certain processes and procedures, as well as applying them fairly across the workforce.

You may be able to avoid redundancies altogether by adopting a restructure. This could be the introduction of more efficient working practices, a change in the Company’s strategic direction, or flexible/home working.

Whatever situation you are facing, we can support and assist you, whether it is a small-scale redundancy situation or a more complex restructure of a large workforce. We can provide comprehensive advice on the process to follow, including selection, scoring matrix, interviewing processes as well as dealing with any challenges from your employees. We can also draft tailored documents and letters for the consultation process.

For more information, please do not hesitate to contact Sally Morris on 01905 610410 or at sally.morris@mfgsolicitors.com.

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