In today’s ever-evolving economic landscape, businesses continue to face uncertainty. Whether you’re navigating post-pandemic recovery, adapting to technological disruption, or responding to market shifts, one question remains central: Is your workforce aligned with your business goals?
From growth to downsizing, restructuring your business from an employment law perspective is not just prudent—it’s essential.
Why Employment-Focused Restructuring Matters
Strategic planning often focuses on financials and operations, but overlooking the employment dimension can expose your business to legal and reputational risks. A regular review of your staffing structure, roles, and employment terms ensures your business remains agile and compliant.
Key Employment Considerations in Restructuring
- Redundancies
Whether due to automation, relocation, or cost-cutting, redundancies must be handled lawfully. Employees with over two years’ service are protected against unfair dismissal and are entitled to statutory redundancy pay. Employers must ensure:
-
Fair selection and pooling (if applicable)
-
Meaningful consultation
-
Compliance with collective consultation rules (20+ employees)
Tip: Settlement agreements can help avoid disputes and streamline exits.
- Workforce Review
Further to Covid 19, the related economic climate and changes to working practices; businesses should assess whether employees still fit evolving roles, hours, or business needs. If not, consider:
-
Role redefinition
-
Performance-based exits
-
Alternative roles or redeployment
- Settlement Agreements
These remain a powerful tool for:
-
Amicable exits
-
Fast-tracking redundancies
-
Minimizing legal risk
They offer clarity and closure for both parties and can protect directors and officers from future claims.
- Varying Employment Contracts
Changing business needs may require:
-
Adjusting roles, responsibilities, or locations
-
Modifying pay, hours, or benefits
Important: Any fundamental change requires employee consultation and consent. For 20+ affected employees, collective consultation rules apply, and failure to comply can lead to claims for a Protective Award.
- Temporary Changes to Employment Status
Options like lay-offs or short-time working may be necessary during downturns. These require:
-
Contractual provisions or employee consent
-
Awareness of redundancy pay triggers after prolonged lay-off
- TUPE Transfers
If you’re buying, selling, or outsourcing a business function, TUPE (Transfer of Undertakings Protection of Employment) may apply. This means:
-
Employees transfer with their existing terms and continuity of service
-
Employers must inform and consult affected staff
Non-compliance can lead to significant penalties.
- Promotions and Retention
Promoting key staff can boost morale and productivity. Consider:
-
Incentives like performance bonuses
-
Enhanced pension schemes
-
Career development pathways
- Recruitment
If your business is growing, don’t hesitate to bring in new talent. A fresh perspective or skillset can be transformative.
- Employment Contracts
Ensure contracts are:
-
Up-to-date and tailored to your business
-
Include protective clauses (e.g., probation, notice periods, garden leave)
-
Reviewed regularly, especially after promotions or role changes
How Farleys Can Help
At Farleys Solicitors, we specialise in employment law and HR support for businesses. Whether you’re planning a restructure, managing redundancies, or navigating TUPE, we offer:
-
Practical legal advice
-
Strategic planning support
-
Hands-on or behind-the-scenes assistance
Please contact us on 0845 287 0939 or get in touch by email.