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Restructuring When restructuring, when is dismissal and re-engagement appropriate rather than redundancy? What are the key risks in each approach?
07 November 2018
1
Mark Hamilton Partner People, Reward and Mobility
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1. How do you identify whether there is a redundancy situation?
2. When should you consider dismissal and re-engagement?
3. What are the key risks of dismissing and re-engaging?
4. What are the key risks when handling redundancies?
5. Questions and Discussion
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Agenda
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Business closure
• Complete closure of the organisation
Workplace closure
• Closure of one of several sites • Relocation to a new site
Diminished requirement for employees to do work of a particular kind
• Focused on business needs not particular employee • Overall employee numbers may not change
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How do you identify whether there is a redundancy situation?
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Changing terms and conditions
Change in shift
patterns
Move to annualised
hours
Changing pay/
benefits
Change in status
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When should you consider dismissal and re-engagement?
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What are the key risks of dismissing and re-engaging?
Impact on staff morale and public
opinion
Potential loss of skilled and qualified staff
Collective consultation?
Unfair dismissal
claims
HR1 required?
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• Appropriate representatives • Required information • With a view to reaching
agreement
Collective consultation
• Right to be accompanied? • Fundamental to fairness
Individual consultation
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Consultation
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Failure to consider bumping
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What are the key unfair dismissal risks when handling redundancies?
Defining the pool for
redundancies
Forgetting absent employees
Not offering suitable alternative employment
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Employer discretion
Narrow vs wide pools
Pools of one Interchangeable skills
Dealing with different sites
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Pooling
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No general obligation to
consider but…
Failure to consider may
be unreasonable
Does the employee need to raise?
Think about impact
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Bumping
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Maternity leave protection - "reg 10"
How to consult with absent employees?
Factor in to timescales
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Absent employees
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Plan in advance
Document key
proposals and reasons
Don't forget to submit an
HR1 if required
Brief/train managers
Take employee
suggestions on board
Provide feedback to employees
Sense check: is this reasonable?
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Top tips
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Questions and Discussion
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Thank you
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