Workforce changes are sometimes unavoidable. Whether due to business restructuring, technological change, or financial pressures, redundancies can be necessary. Our redundancy and restructuring solicitors support employers plan and implement redundancy and restructuring programmes fairly, legally, and efficiently, reducing risk and protecting your business.
Why Redundancy Planning Matters
Redundancy is one of the most high-risk employment issues. Mistakes in planning or implementation can lead to:
- Unfair dismissal claims
- Protective award claims for failure to consult
- Discrimination claims
- Reputational damage
Careful planning ensures that any reduction in workforce is conducted lawfully and in a way that is transparent, fair, and defensible.
Legal Requirements for Redundancy
Employers must follow both substantive and procedural requirements when making employees redundant.
Fair Reason:
- Redundancy must be genuine, arising from:
- Closure of the business or workplace
- Reduced need for employees to carry out certain work
- Changing location
Fair Selection:
Selection of employees at risk must be objective and non-discriminatory. Common criteria include:
- Skills, qualifications, and experience
- Performance records
- Attendance (if relevant)
Consultation Requirements:
- Individual consultation is always recommended.
- Collective consultation applies if 20 or more employees are affected within 90 days, requiring discussion with employee representatives or trade unions.
If you need to dismiss an employee or restructure your business call 0330 107 0106 or request a free call back to speak with our redundancy and restructuring solicitors.
Restructuring and TUPE
Workforce restructuring may involve more than redundancies, including redeployment, role redesign, outsourcing, or transferring parts of the business. In such cases, employers must carefully consider TUPE (Transfer of Undertakings Protection of Employment) regulations, which protect employees when a business or service is transferred to a new owner.
Key considerations under TUPE include:
- Employees automatically transfer to the new employer with their existing terms and conditions
- Dismissals connected to the transfer are automatically unfair unless there is an economic, technical, or organisational (ETO) reason entailing changes in the workforce
- Both the outgoing and incoming employer can be held jointly liable for breaches, including unfair dismissal or failure to consult
Even outside TUPE situations, restructuring can trigger claims if employees feel they have been dismissed unfairly. Examples of potentially unfair dismissals include:
- Applying unfair selection criteria
- Failing to consult or explore redeployment opportunities
- Changing terms and conditions without agreement where the change is detrimental