Restructuring and Redundancy Flowchart

Restructuring and Redundancy Flowchart

Restructuring and redundancy are high risk processes and as such you need to involve HR to assist with advice and planning. Where the end result may be loss of jobs you need to ensure that your process not only focuses on the individuals potentially affected but also does everything possible to minimise the impact of the changes you intend to make on the remaining employees. A badly handled restructure can damage the momentum of your Consultant for a long period.
1. We are legally required to consult with people whose jobs may be affected by our proposed restructuring giving them enough information about the proposal that they can make a meaningful contribution to the decision making process. Your purpose in sharing your restructure proposal is not only to meet that legal obligation but equally importantly to ‘sell’ the need for change and test the workability of the new structure on the rest of the team who will need to work in the changed environment and who want to see their colleagues treated fairly. Use the Restructuring Proposal letter which includes the following information;

  • Business reasons justifying proposed change.
  • Potential impact on employees(s)
  • Process and Timetable through to a final decision.
2. Usually face to face meeting.

  • Prior notice to any affected Union
  • Present the proposal.
  • Hand out the Restructuring Proposal letter.
3. Legally you must provide:

  • nough info so employees can comment effectively on your proposal
  • Opportunity to ask questions;
  • Reasonable time to consider the proposal and get advice;
  • You must genuinely consider any feedback before making up your mind.
  • IF there’s a selection process required (e.g. interview or ‘most skilled’ get preference for remaining jobs) you need to share the selection criteria so people can comment on them as part of giving their feedback on the wider proposal)
  • Generally its best to schedule a meeting with the employee to get their feedback before you decided.
4. Decide whether the proposal will proceed and announce your decision;

  • May include changes to plan or process
  • Talk to those directly affected (i.e. losing their jobs) before making any wider announcement
  • Should be confirmed in writing
  • Spells out process and timetable (including any selection process)
  • Its good practice to comment on feedback received.
5.If some selection process is necessary run that process as part of implementing the restructuring plan as announced.

  • May include requiring employees to apply for ‘new’ roles or selection of employees for redundancy
  • ssential to comply with any employment agreement process.
  • Note: if an employee misses out on selection or their position is redundant you have an obligation to consider whether you can reasonably redeploy them to another position before finally determining they are redundant and giving them notice.
  • Talk to HR.
6. Notify people of the final impact on them of the process. People whose positions were at risk should be told face to face of the outcome. Talk to redundant employees before notifying those who will be retained. [Remember: you have an obligation to consider any alternative jobs before declaring a person redundant]. Issue a Notice of Redundancy letter after the conversation.
7. Provide appointment letters (talk to HR) to anyone moving into a new position to confirm any changes to title, job content and terms and conditions of employment. Redundant employees may be either working out their notice period or paid in lieu of notice. You may need to manage paid time off for job search / interviews etc for people made redundant.
8. Manage the handover of work responsibilities and normal exit arrangements for those leaving and any training requirements for people picking up new responsibilities.