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What is a Company Restructure?

Company RestructureThere is a common assumption that a company restructure automatically results in a redundancy situation, whilst this is quite common it is not always the case.

Reasons for a company restructure…

  • It may be in response to a crisis such as a continued drop in sales
  • Loss of position within the market
  • The introduction of new competitors, new legislation, new working practices or technology
  • It may even be following a business transfer
  • Or to make the business more viable to sell

Considerations…….

  • New company structure
  • An increase or decrease in employee numbers
  • Potential changes to job roles & how significant they may be
  • Contract variation
  • Contractual obligations
  • Potential legal risks

And there’s more…

These are just some areas to consider..

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Department Restructure

You may find that you have a smaller scale restructure but the same principles apply, it’s not going to happen overnight, it needs careful planning and control.

If handled badly you may find employees taking sickness absence due to the stress and this will delay the process in addition to potential claims for unfair dismissal if a role changes significantly and it’s not managed correctly.

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Comments or questions are welcome.

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Jude Read MCIPD is a trusted HR source for following publications:

Business Matters magazine
Business Matters magazine
Jobsite Website
Jobsite Website

 

 

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