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Restructuring When restructuring, when is dismissal and re-engagement appropriate rather than redundancy? What are the key risks in each approach?

07 November 2018

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Mark Hamilton Partner People, Reward and Mobility

1.  How do you identify whether there is a redundancy situation?

2.  When should you consider dismissal and re-engagement?

3.  What are the key risks of dismissing and re-engaging?

4.  What are the key risks when handling redundancies?

5.  Questions and Discussion

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Agenda

Business closure

•  Complete closure of the organisation

Workplace closure

•  Closure of one of several sites •  Relocation to a new site

Diminished requirement for employees to do work of a particular kind

•  Focused on business needs not particular employee •  Overall employee numbers may not change

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How do you identify whether there is a redundancy situation?

Changing terms and conditions

Change in shift

patterns

Move to annualised

hours

Changing pay/

benefits

Change in status

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When should you consider dismissal and re-engagement?

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What are the key risks of dismissing and re-engaging?

Impact on staff morale and public

opinion

Potential loss of skilled and qualified staff

Collective consultation?

Unfair dismissal

claims

HR1 required?

•  Appropriate representatives •  Required information •  With a view to reaching

agreement

Collective consultation

•  Right to be accompanied? •  Fundamental to fairness

Individual consultation

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Consultation

Failure to consider bumping

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What are the key unfair dismissal risks when handling redundancies?

Defining the pool for

redundancies

Forgetting absent employees

Not offering suitable alternative employment

Employer discretion

Narrow vs wide pools

Pools of one Interchangeable skills

Dealing with different sites

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Pooling

No general obligation to

consider but…

Failure to consider may

be unreasonable

Does the employee need to raise?

Think about impact

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Bumping

Maternity leave protection - "reg 10"

How to consult with absent employees?

Factor in to timescales

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Absent employees

Plan in advance

Document key

proposals and reasons

Don't forget to submit an

HR1 if required

Brief/train managers

Take employee

suggestions on board

Provide feedback to employees

Sense check: is this reasonable?

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Top tips

Questions and Discussion

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Thank you

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