Redundancy Solicitors and Restructuring Advice for Employers
If there are changes needed to the structure of your business, it is critical that the correct redundancy process is used and that it is carried out fairly. Seeking advice from specialist redundancy solicitors before you start the redundancy process is strongly recommended.
What is redundancy?
In employment law, redundancy has a specific definition, and a genuine redundancy will involve one or more of the following:
- Your entire business closing;
- Closure of a particular site or sites; and/or
- Less requirement for a particular type of work to be carried out by employees.
There are many reasons why redundancies may be required in your business, for example:
- Changes to what products or services you provide;
- External pressures which make the size or structure of your business economically less viable;
- Technological change which alters what you require employees to do or the number of employees you require;
- Changes to the location of your business.
You are free to make reasoned business decisions, and employment law does not prevent this. If there is a genuine business reason for changes that have the effect of reducing your headcount, this is likely to qualify as a genuine redundancy, and, provided you follow a fair, consistent, and non-discriminatory redundancy process, you are lawfully able to operate a more efficient business with reduced employment costs.
‘Restructuring’ or ‘reorganisation’ may lead to redundancy if there is a reduction in employees as per the above, but restructuring does not necessarily have to lead to redundancies; you could use a different structure with the same headcount to see if it functions more productively.
How can our redundancy solicitors help you with redundancies and restructuring?
- Drafting a clear, comprehensive redundancy policy – There is no statutory redundancy procedure, but the process must still be carried out fairly. A clear, easy-to-follow policy aligned with best practice (including Acas guidance) makes this easier. If you do not have a written policy or would like yours to be reviewed or updated, we can help.
- Guidance on the redundancy process – Implementing a well-drafted redundancy policy so that the procedure is followed precisely is critical to true fairness. We help you avoid unfair dismissal claims by explaining the process in practical terms and offering bespoke advice reflecting the specific circumstances of your redundancy or restructuring exercise.
- Collective consultation – If you are expecting 20 or more redundancies within 90 days at the same location, there are additional collective consultation duties that you must comply with and which we can guide your business through.
- Calculating redundancy payments – We can assist you with calculating contractual or statutory redundancy payments due to your employees.
- Redundancy meeting preparation – Meetings held with employees throughout the process require preparation. Our redundancy solicitors can draft letters of invitation, letters confirming risk of redundancy and, if required, letters confirming termination of employment. We can also assist with questions about pools for redundancy, selection criteria, how to consult with employees and how to give notice, where appropriate, at the end of consultation.
- Settlement agreements – To reduce the length of, or dispense with, the redundancy process you might consider offering your employee(s) a settlement agreement. Our redundancy solicitors can assist with drafting, advising and negotiating exit packages with employees and their solicitors.
- Employment Tribunal claims – If your business is facing an Employment Tribunal claim as a result of a redundancy exercise, our redundancy solicitors can assist you in defending the claim.
Go back to: Employment Advice for Employers
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