What is the difference between restructuring and redundancy?
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.
When does a company have a restructuring charge?
A company reorganizes its operations due to various reasons- like merger and acquisition of a company, selling off a unit, or redundancies like financial settlements of the employees who undergo layoffs. This expense is considered under restructuring charge. On the other hand, a company may hire new staff when it decides to expand its operations.
When to reapply for a job after a merger or restructuring?
It can also happen when a company is downsizing or restructuring, layoffs are planned, and there will be a limited number of new positions . In this case, current employees will have to compete for one of the job openings that will be available.
Why is sample layoff letter due to restructuring so important?
That is why having a sample layoff letter due to restructuring available for your human resources team is so important. Having this template will help alleviate one of the many stressors that plague human resources teams when planning a huge restructuring.
What should employees do during restructuring and redundancy process?
It is also important throughout a restructuring and redundancy process that employees know exactly where they stand with regards to their final pay and notice rights, and what else they may be entitled to if they are made redundant. This could include, for example, the right to take reasonable time off work to secure alternative employment.
Why is restructuring a stressful time for employees?
Organizational restructuring is a stressful time for all parties involved. Executives feel overwhelmed by the weight of making decisions that have heavy impact, employees feel stressed about their future, and human resources professionals worry about how they will effectively communicate all of these changes to the organization’s workforce.
When do you have to restructure an organization?
For example, if your organization was to merge with another, you would probably have to restructure your departments because of human capital redundancies.
What do you mean by restructuring in business?
Restructuring is the process of changing an organization to better fit the objectives of a business. For example, if your organization was to merge with another, you would probably have to restructure your departments because of human capital redundancies.
What should you include in a layoff letter due to restructuring?
After that you will have to notify people that they will either begin working on a new project, or that they will be let go because of the lack of headcount available after the restructuring. What should you include in a layoff letter due to restructuring?