Restructuring & Redundancy Solicitors

Restructuring refers to wider organisational changes within a business, while redundancy is a specific legal process that can arise when there is a reduced need for employees to carry out particular work.

In some cases, a restructure may involve creating new roles, changing reporting lines or moving responsibilities without any job losses. In others, redundancies may be necessary if certain positions are no longer required.

Employers can make redundancies where there is a genuine redundancy situation, such as a business closure, workplace closure or a reduced requirement for employees to undertake a particular type of work.

However, having a genuine redundancy reason is only part of the process. Employers must also follow a fair procedure, including consultation and consideration of suitable alternatives where appropriate.

A fair redundancy process usually involves identifying the roles affected, consulting with employees, applying objective selection criteria and considering alternative employment opportunities within the business.

The process should be transparent and consistent throughout. Employers who fail to follow a fair procedure may face claims for unfair dismissal, even where a genuine redundancy situation exists.

The length of consultation will depend on the number of employees affected and the circumstances of the proposed redundancies.

Where fewer than 20 redundancies are proposed, there is no prescribed minimum consultation period, although consultation must still be meaningful. Where 20 or more redundancies are proposed within a 90-day period, collective consultation obligations may apply and minimum timescales must be followed.

Collective consultation is a legal requirement where an employer proposes making 20 or more employees redundant within a period of 90 days.

Employers must consult with employee representatives or recognised trade unions about the proposals, the reasons behind them and ways to avoid or reduce redundancies. Failure to comply can result in significant financial penalties.

While length of service can form part of a redundancy selection process, employers should be cautious about relying solely on a ‘last in, first out’ approach.

Using this method alone could potentially disadvantage certain groups of employees and lead to discrimination risks. Selection criteria should generally be objective, measurable and relevant to the needs of the business.

Yes. Employees may challenge a redundancy dismissal if they believe the redundancy was not genuine or that a fair process was not followed.

Claims can arise where consultation was inadequate, selection criteria were unfair or alternative employment opportunities were not properly considered. Seeking legal advice before implementing redundancies can help reduce these risks.