Alex Does restructuring mean redundancies?
What does this mean? Usually, it is the same people being employed but doing different jobs for different pay. This is often called a restructure, but sometimes it strays into redundancy if the requirement for people to do a particular job is eliminated and they cannot do another job instead.
What happens in a restructuring?
Restructuring is when a company makes significant changes to its financial or operational structure, typically while under financial duress. Companies may also restructure when preparing for a sale, buyout, merger, change in overall goals, or transfer of ownership.
What happens to your employees in a restructuring?
Employment laws protect some groups of employees, eg cleaning, catering and laundry staff, in certain restructuring situations. Restructuring is about making sure you have the right roles to deliver to your customers and your strategy — it’s not a way to manage individual employee performance issues.
What should I do if I am made redundant in a restructuring?
Otherwise there is a danger that your dismissal will be unfair. If you are made redundant in a restructuring, your employer should offer you suitable alternative employment if there is any. Otherwise, any dismissal may well be unfair.
Can a person be sacked because of a restructuring?
If there are jobs in the restructuring for which you are suitable and qualified, you should normally be offered one of those jobs before they are offered to an external candidate. Otherwise there is a danger that your dismissal will be unfair.
How to thoughtfully communicate a company restructure?
How to Thoughtfully Communicate a Company Restructure Restructuring is a strategy through which business leaders change the direction of their organization in order to remain competitive. Many cases of restructuring involve downsizing. The company may dismiss employees, eliminate departments, or close some of its retail locations.
Why do you have to reapply for a job after a restructuring?
. In this case, current employees will have to compete for one of the job openings that will be available. Another reason for asking employees to reapply is that it precludes discrimination issues that could occur if an employer decides to keep some employees and not others during a restructuring.
When to leave a company after a restructuring?
Even if you eventually plan to leave because the new structure is not to your liking, follow the aforementioned strategies so that you can move on your own timing without an employment gap .
Can a business make an employee redundant or restructuring?
However, if the business has employees who work in the cleaning and food catering services at any workplace; laundry services for the education, health or age related sector; orderly services for the health or age-related sector; or caretaking services for the education sector, there are special rules that apply to them.
Why do companies ask employees to reapply for a job?
Why Companies Ask Employees to Reapply It is not uncommon for employers to formally ask all or some of their current staff to reapply for a job after a merger or acquisition. It can also happen when a company is downsizing or restructuring, layoffs are planned, and there will be a limited number of new positions 1 .