reorganisation & succession
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Wiltshire’s leading employment lawyers
How can Goughs
If as a business you are considering reorganisation or restructuring, the first step is to be clear about your business rationale and why the change is required. In helping a business to develop the rationale it is worth asking the question “What are the desired outcomes from the restructure?”
Goughs can help you address this question. We will draw on our experience as an employer as well as our successful and growing business to ensure our advice is realistic and proportionate for you.
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What the law says on business restructuring
“It is important that nothing should be done to impair the ability of employers to reorganise their workforce and their terms and conditions of work so as to improve efficiency.”
Courts and Tribunals have long recognised the rights and needs of a business to reorganise and restructure. Such reorganisation could include a reduction in staff, changes to terms and conditions, or perhaps a change in the way an item is produced. If an employee refuses to go along with a business reorganisation, then in certain circumstances, an employee can be fairly dismissed. Find out more by visiting our frequently asked questions or get in touch with a specialist employment lawyer today.
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Your employment law questions answered
Communication is the key, and it is important to have an effective consultation process. This could include group consultations and individual consultations. If your business has union recognition it is imperative that you engage with the union, especially if there are collective agreements in place.
Also, the number of employees who may be affected by the restructure will depend may trigger prescribed periods for consultation. A tribunal will always consider the ‘reasonableness’ of any decision, and to evidence this employers should clearly document the process.
Employers should be wary of trying to disguise a genuine redundancy situation as a business reorganisation because, for example, it wants to avoid making redundancy payments. Redundancy is clearly defined within the Employment Rights Act.
Put succinctly, redundancy can occur:
- If the business is closing down.
- If there is less work for employees to complete.
- If there is a change in location.
- If one particular role or function is no longer required.
- If there is a reorganisation of the work meaning that there are new jobs that are very different to the old ones.
At Goughs, our employment specialists can draft and tailor contracts and policies to fit your business needs, whilst ensuring they are reasonable and enforceable. We can help with both writing and reviewing existing contracts and advising on breach of employment contract issues.
We have built up many years of experience and our team not only offer advice to businesses but also advise on broader business planning issues and sit on various advisory boards, ensuring that our advice and expertise looks beyond the contract itself and ensures all advice really is in the best interest of the future of the business.
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Goughs have been providing legal services to businesses across the south west since 1882.
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