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Q. What are the risks I need to consider when restructuring?

A.

Restructuring your business possesses risks that vary with its’ size, scope and complexity.

The main risks are doing things that could result in unfair dismissal claims or claims of discrimination due to unfair treatment.

Common hot spots to look out for are:

a)      Selection criteria

b)      A “sham” redundancy

Selection Criteria

You need this to help you decide how you are going to reduce the number of people doing the same job. 

Excellent record keeping will benefit you here as you can rely on as much objective data as possible, particularly having accurate sickness absence records, disciplinary warnings and lateness records. If your records are less than meticulous, you could be at risk of tribunal or court claims.

A “sham” redundancy

This is when an employee claims you are using redundancy to disguise the real reason for dismissing them.

For example, someone who is being managed for poor performance and then finds their role, and only their role is being earmarked for redundancy.

Tracy Green
Tracey Murphy
Managing Director
01772 600228
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