There are numerous reasons why a business may need to undergo restructuring, but whatever the incentive behind this decision may be, it is essential to obtain specialist legal advice before proceeding.
There is likely to be a wide range of issues to overcome, which is why the process must be well organised and that the business takes into account the legal implications of making such changes. In these situations, an employer must follow a fair process in relation to the effect on employees from the restructuring.
Why you might need to restructure your business
The reasons for restructuring a business are variable. Generally, however, they often involve one of the following concerns:
- Where there is economic uncertainty.
- A need to downsize due to more general fluctuations in the market.
- Relocation of the business.
- A change in the way a business operates, requiring a restructure.
The impact of restructuring a business on employment
When a business goes through a restructure, this will undoubtedly affect employment levels within the firm. This may result in a redundancy situation where there is no longer the same requirement for employees to perform certain work. Alternatively, restructuring the business could also cause a redistribution of work amongst employees, and therefore a variation to employment contracts must be made.
When making redundancies [LINK TO REDUNDANCY ADVICE], employers must ensure there is adequate consultations with employees before any final decisions are made and implemented. This will usually be face-to-face meetings with individual employees, except where there are more than a set number involved, in which case there also has to be a collective consultation with set timelines.
For a restructuring process, employers have various options they should consider before making any redundancies, and we can advise our clients on the best options.
Contact our Business Restructuring Lawyers in the UK
Our lawyers can advise you on any employment law . implications in relation to a company restructure and guide you as to the best route in your circumstances. To find out more about how we can help you, please contact us via the online form ., email us at email@example.com or call us on +44 (0)207 183 9482.