In these challenging economic times there are many reasons why businesses are finding it beneficial to reorganise or streamline. There are ways in which the following actions, short of reorganising or streamlining, may provide your organisation with the required efficiency:
- Recruitment freeze
- Reducing overtime
- Review of contracted & sub-contracted work
- Review of engagement of agency staff
- Short-time working
- Lay off
- Unpaid leave
- Secondment
- Sabbatical
- Redeployment to other departments, premises or areas
- Compressed working week
- Reducing remuneration packages/working hours
- Mandatory annual leave
- Pension contribution holiday
- Temporary facility shutdowns
If you are considering making changes, reorganising or streamlining, here are some of the key issues to consider first:
- Is there a business need justifying the proposed changes?
- It might be possible to agree changes with the affected staff.
- The organisation will need to carry out genuine and meaningful consultation with its affected employees before imposing changes.
- There may be an obligation to collectively consult about the proposals – failure to do so may give rise to a liability for protective award of up to 90 days pay per affected employee.
- Take legal advice early and have prepared the style documents which will guide you through the process.
- Where changes are being made to terms and conditions, think about ways in which they can be implemented with as little inconvenience to employees as possible.
- If employment is being terminated, whether to have employees work their notice, placed on garden leave or paid in lieu of notice should be determined in light of many factors, including the need for work to be done, possible effect on the business during the notice period and the possibility of favourable tax treatment of payment in lieu of notice.
MacRoberts provides strategic advice about the scope, format and practicalities of making workforce changes, reorganisation and/or streamlining including style documentation to simplify the process for clients.
Disclaimer
The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.
