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Restructuring and Redundancy in 2020

A quick overview

Delivering the news about organisational restructures and redundancies is never easy!  Unfortunately, during this unprecedented time with Covid-19, redundancies and restructures are quickly becoming a reality for many businesses.  

Although Covid-19 has made huge disruptions to our workplaces, we still need to operate in good faith and follow a process. We have set up this blog to help outline the redundancy and restructure process and hopefully answer any questions you may have.  

Process overview  

 

When you are considering restructuring or making someone redundant it is important to remember that the process is about the position and not the person. In regards to redundancy, you need to ensure that you have done everything possible to retain the person, and demonstrate that redundancy is the last resort. 

It is best practice to have a documented proposal, which you can share with your employees outlining the relevant information. You will need to provide a valid reason for the proposed changes, simply stating Covid-19 is not enough.  

After you have completed your proposal it is a good idea to look at the affected employee’s current employment agreements. There may be a redundancy and restructuring clause in there that will outline the process you have agreed to and highlight what provisions they are entitled to, for example, notice period, payments, etc.  

Once you are ready, you will need to meet with your employee to discuss and provide them with the proposal. You will need to give them a reasonable time to provide feedback on what you are proposing. It is important that you do not treat the proposal as a done deal, as you must genuinely consider the feedback they have provided and be responsive.     

A workplace change process can be stressful for any employee, so it may be a good idea to put in a range of support to assist them through the process. This may include but not limited to; EAP services, time off to consider and provide feedback, and providing career advice.  

Once you have considered the feedback and have determined your final structure/outcome, you can provide a letter to the employee outlining the terms of the changes. It may also be a good time to meet with them to answer any questions they may have.  

If you find yourself needing to restructure or make redundancies, give us a call on 0800 HR LIVE. We want you to have all the support you need during this stressful time and if we can help in any way, let us know!  



 

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