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Redundancy and Restructuring

Redundancy and Restructuring advice for employers/businesses

A business going through a restructure may be doing so for operational reasons, not financial. However, in some situations, the loss of jobs is inevitable during a restructure. A redundancy situation may arise from a restructure where you no longer afford to maintain your wage roll due to a decline in business or where technology is a cheaper alternative.

If you are dealing with staff redundancies, it is essential that you get your redundancy strategy right and treat your employees fairly and comply with the legal requirements or you may face an unfair dismissal claim at the Employment Tribunal. 

At Davenport Solicitors, we understand that the threat of redundancy can cause a change in the mood of a workplace and redundancies are usually met with a wide range of reactions. Therefore, we provide practical legal advice to help our clients manage their redundancy process effectively.

Read Our Step-by-Step Guide to Redundancies >>

The Redundancy Process

A fair redundancy procedure consists of three stages:

1. Following a fair selection process. Employers must decide on a fair basis who will be selected for potential redundancy and decide on any redundancy pools of employees who have similar positions. Employers must be careful not to discriminate against a group of individuals on grounds such as age, disability, sex, marriage or race. In the case of Larkin v Liz Earle Beauty Co Ltd, the employment tribunal found that Mrs Larkin’s redundancy was unfair and discrimination on the grounds of pregnancy and maternity and award her £17,000. Employers should score those being considered for redundancy against objective criteria which may include skills and qualifications, performance and disciplinary records.

2. Following a fair consultation process. A fair redundancy process must be followed which allows the employees to raise their objections/concerns and suggest alternatives to redundancy.

3. Considering alternative employment options: If alternative employment can be found, an offer to an affected employee should be made. An employee who accepts an alternative role should be given a minimum 4-week trial period. If after the trial period, it is agreed the position is unsuitable, the employee will still be entitled to their redundancy pay. In Vokes Limited v Bear, the employment tribunal held the dismissal unfair as the employer failed to consider alternative employment.

Redundancy plan creation for your business

Our redundancy plan will help you manage each stage of your redundancy process. If you want our assistance, we will provide you with advice on how to:

    • Avoid compulsory redundancies
    • Consult your staff
    • Select staff for redundancy
    • Give staff notice
    • Work out the correct redundancy pay
    • Support staff and plan for the future
    • Proceed with the redundancy process

Learn How to Correctly Use a Redundancy Pool >>

How we can help you

At Davenport Solicitors, we understand that the threat of redundancy can cause a change in the mood of a workplace and redundancies are usually met with a wide range of reactions. Therefore, we provide practical legal advice to help our clients manage their redundancy process effectively.

If you are dealing with staff redundancies, it is essential that you get your redundancy strategy right and treat your employees fairly and comply with the legal requirements or you may face an unfair dismissal claim at the Employment Tribunal.

As experts, in redundancy and restructuring, we can provide specialist employment law advice to ensure that any changes you wish to make to your business are done in the most efficient and effective way possible.

Want to know more?

For any redundancy & restructuring legal advice, contact our employment redundancy lawyers at Davenport Solicitors, London. Call us on 020 7903 6888 or e-mail us at contact@davenportsolicitors.com. We aim to reply within 24 hours.

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