0330 555 1139 hello@crossehr.co.uk

To quote the title of a famous Sam Cooke song, one of the many consequences of the lockdown is that we have all had plenty of time to think, ruminate and ponder about our lives. For us business owners, this time of reflection has extended to include our businesses.

As a result, many may well be facing the prospect of changing their business to adapt to the changing times – be it out of necessity or because you have finally had the time required to get your house and business in order and consider the future.

In short, whether we like it or not ‘A change is gonna come’.

 

Restructuring Your Business

Whether a restructure is a choice or your only option, it can feel like a pretty overwhelming task to approach alone… So, where should you begin?

Below, we share some of the common questions we get asked about restructures and provide clarity to help you on your way.

 

“Can I just ‘do it’?”

Yes, you can. However, we recommend getting a restructure plan in place first.

This doesn’t have to be anything fancy or a scary task. Just write out your rationale for doing it, the consequences it will have, the timeline for carrying it out and the process that you will follow.

Doing so will help you gather your thoughts and put some structure around it, so that you can communicate it to your staff.

“What is consultation?”

Consultation is borne out of Information and Consultation Directive, where employers are obliged to consult with employees on any aspect that will affect their employment.

Before you moan, you really should do it!

However, be sure not to confuse consultation with negotiation. Whilst you should take on board your employees’ views about the restructure, you are under no obligation to actually implement those views.

“Do I have to consult?”

Yes, because failure to consult can cost you.

An employment tribunal can award a penalty for failure to consult. And, in the case of TUPE (Transfer of Undertakings – Protection of Employment Regulations), that award is 13 week’s salary.

“How long should consultation last?”

There are no hard and fast rules if your business has less than 20 employees. However, it should be no less than a week and as much time as possible.

“Can I use Last In, First Out?”

We’re telling you now – no you can’t. We’re not sure where the LIFO philosophy came from but forget you ever heard of it.

“Does furlough cover redundancy?”

The short answer is no.

If you are looking to end furlough to make your employees redundant, seek further support or contact us.

“What is selection criteria?”

Selection criteria is the basis by which you will select employees for redundancy.

The criteria can be based on attendance, performance, disciplinary, experience and qualifications to name but a few. Some businesses choose to base this on a competitive recruitment process.

 

Helping You Restructure

We decided, as part of the Coming back from Covid series, to give you a quick guide to restructuring.

Whether you are just moving the chairs around the room or making people redundant, our Restructuring Toolkit should provide you a great place to make a start.

As we are a generous lot here at CrosseHR, we’ve also included a few templates to help you along – helping you make the most out of your limited time and budget at this difficult time.

And remember, if you need any further help with your restructure or any HR concerns, we are just a phone call away: 0330 555 139.

 

What’s included in our Restructuring Toolkit?

 

Our restructuring toolkit is free to download here. Included within it is:

  • Restructure business plan template
  • General guide to redundancy and the redundancy procedure
  • Consultation invitation letter template
  • Template for recording individual consultations
  • Letter template to inform employees they are ‘at risk’
  • Formal redundancy notice template

 

You can download it for free here.