Implementing a business reorganisation—employment issues
Produced in partnership with Jane Fielding of Gowling WLG

The following Employment practice note produced in partnership with Jane Fielding of Gowling WLG provides comprehensive and up to date legal information covering:

  • Implementing a business reorganisation—employment issues
  • Initial considerations
  • Whether the re-structure gives rise to a redundancy situation
  • Definition of redundancy
  • Whether dismissals will be for 'some other substantial reason' (SOSR)
  • Sound business reasons required
  • No changes for arbitrary reasons
  • Employer must be able to demonstrate discernible advantages
  • Interests of employees should be considered
  • Extent of consultation with affected employees
  • More...

Implementing a business reorganisation—employment issues

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: Brexit and IP completion day—implications for employment lawyers.

A number of employment law issues arise when a business wants to implement a reorganisation. Those issues are both legal and practical and this Practice Note considers both aspects, as well as how to manage the interaction between the various issues. This Practice Note assumes that the business continues to exist in the same location but under a different structure, rather than being closed down or moving site, where redundancy will be the primary consideration (for which see Practice Note: Definition of redundancy).

In practice, businesses will often take calculated risks on short-cutting the relevant legal processes, perhaps to save time or by a degree of reverse engineering to achieve a desired outcome. However, this Practice Note assumes that the business wishes to do its best to take a legally-compliant approach, while explaining the legal and employee relations

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