Is restructuring the same as redundancy?

Usually, it is the same people being employed but doing different jobs for different pay. This is often called a restructure, but sometimes it strays into redundancy if the requirement for people to do a particular job is eliminated and they cannot do another job instead.

Consequently, does restructuring mean redundancies?

A business restructure doesn't necessarily mean you need to make redundancies. If you're considering making a position redundant by restructuring, don't assume you don't need to follow the usual process. Just because the job role is no longer needed, doesn't mean you're safe from unfair dismissal claims.

Secondly, what are the alternatives to redundancy? Here are the Top 10 alternatives to redundancy:

• Recruitment freezes.
• Pay freezes or cuts.
• Pay deferral schemes.
• Remove overtime.
• Short-term or flexible working.
• Reduce use of agency workers.
• Cut bonuses or pension payments.
• Sabbaticals (paid or unpaid)

Also to know is, what does staff restructuring mean?

A restructure is simply defined as a management-led change that results in reorganisation of an existing structure. It can be for one team, or on a much larger scale. It can lead to redeployment of staff to other roles, changes to the grading of posts or positions becoming redundant.

Can I be made redundant then replaced?

This has been – sadly – common during the recession and economic downturn as businesses have had to scale right back. However, if they then hire someone to replace you after being made redundant, this is illegal and you could file for wrongful or unfair dismissal…

Related Question Answers

Can you refuse redundancy?

Refusing an offer

You may lose your right to statutory redundancy pay if you unreasonably turn down suitable alternative employment. You can make a claim to an employment tribunal if you think the job you've been offered is not suitable.

How do I make someone redundant nicely?

10 Tips on How to Announce Redundancy

1. Develop a clear and simple communication strategy. Communicate a clear and consistent message based on the business reasons for the change.
2. Prepare and practise.
3. Avoid leaks.
4. Be compassionate, visible and supportive.
5. Signpost individuals to resources that can help them.

How does restructuring affect employees?

Recent figures from the EWCS-2015 show that workers who had experienced restructuring in the past three years more often reported they needed to learn new things as part of their job, they had higher work intensity, they experienced more bullying and other adverse social behaviours.

What happens in a restructure?

Restructuring is when a company makes significant changes to its financial or operational structure, typically while under financial duress. Companies may also restructure when preparing for a sale, buyout, merger, change in overall goals, or transfer of ownership.

What does it mean if someone is redundant?

Redundancy is when an employer reduces their workforce because a job or jobs are no longer needed. However, if you lose your job and they get someone in to fill it that is NOT a redundancy.

How much notice do you need for redundancy?

According to redundancy law, you're entitled to a minimum notice period of: 12 weeks' notice if employed for 12 years or more. At least one week's notice if you have been employed between one month and two years. One week's notice for each year if employed between two and 12 years.

How long does a position have to be redundant?

You can be made redundant if the business closes down where you work. This is a genuine reason for redundancy. If you'll have been working for your employer for at least 2 years by the time you leave your employer should see if they can offer you a different job.

How do you conduct a restructure?

When setting the objectives to guide your restructure, make sure they are specific and measurable.

1. Set your transition management team.
2. Effectively communicate your restructure plan.
3. Perform a skills assessment.
4. Prepare severance in advance.
5. Talent development programs.
6. Role suitability analysis.
7. Review and reflect.

What is another word for restructuring?

reorganization, re-engineering, redesign, reorganisation, reengineering, restructuration, re-organization, restructured, re-design, rearrangement, reconstruction, transformation, transformations, reshuffle, reformation, reshaping.

How do you restructure a team?

The 7 Principles For A Successful Restructure

1. Align structure to strategy. All restructures must align to strategy.
2. Reduce complexity. Simply put, complexity costs.
3. Focus on core activity.
4. Create feasible roles.
5. Balance 'own work' and supervisory load of managers.
6. Implement with clarity.
7. Maintain flexibility.

How do you deal with restructuring at work?

Corporate Restructuring Survival Guide

1. Don't panic!
2. Don't assume the worst.
3. Try to understand the context.
4. Avoid joining “factions.” During times of change, nobody wants to be alone so they naturally try to align themselves to leaders or groups of employees.
5. Understand there will be fallout… and it will take a while to play out.
6. Be a leader for your team.

Why are restructuring organizations necessary?

Corporate restructuring can be driven by a need for change in the organizational structure or business model of a company, or it can be driven by the necessity to make financial adjustments to its assets and liabilities. Frequently, it involves both. Companies restructure for a variety of reasons: To reduce costs.

What is a consultation period for redundancy?

There's no time limit for how long the period of consultation should be, but the minimum is: 20 to 99 redundancies - the consultation must start at least 30 days before any dismissals take effect. 100 or more redundancies - the consultation must start at least 45 days before any dismissals take effect.

How long does a company restructure take?

Change takes time, and the restructuring process includes many levels of endeavor. Unprepared, a restructuring process can take as long as five years. If it must be completed within a 12-month period, the best approach is to set quarterly tasks that include research, decision making, implementation and review.

Does my employer have to give me redundancy pay?

If you've been in the same job for at least two years your employer has to pay you redundancy money. The legal minimum is called 'statutory redundancy pay', but check your contract – you might get more.

What are the reasons for redundancy?

Fair reasons for redundancy

• asked for one of your rights at work - for example asking for minimum wage, holiday or maternity leave.
• took action about health and safety - for example making a complaint.
• are a whistleblower - you've reported your employer for doing something illegal.
• work part-time or are on a fixed-term contract.

Can I be demoted due to restructure UK?

Demotion can act as an alternative to terminating employment as part of a redundancy or restructuring programme, but employers have to ensure they follow a fair process if making changes that will affect contract terms.

What can I do to avoid redundancy?

8 key strategies to avoid redundancies

1. Freeze external recruitment.
2. Put a stop to voluntary overtime.
3. Offer voluntary redundancy.
4. Consider career breaks.
5. Think about secondments.
6. Review employee benefits.
7. Consider lay offs.
8. Mull over short-time working.

Can you make someone redundant if their job still exists?

Normally your job must have disappeared for your employer to make you redundant. However, it can still be a genuine redundancy if someone moves into your job after their job disappears, making you redundant (called bumping).

Can I be made redundant after furlough?

The note for employees states your employer can still make you redundant while you're on furlough or afterwards and the note for employers states when the government ends the scheme [employers] must make a decision, depending on [their] circumstances, as to whether employees can return to their duties [and] if not, it

Can you ask for redundancy?

Your employer might ask if anyone wants to take voluntary redundancy. If you volunteer, it's up to your employer if they select you for redundancy.

What is compulsory redundancy?

What is compulsory redundancy? It's where a business can end an employment contract because of things such as a change in business circumstances. You can also call the process mandatory redundancy, but the more common term is “compulsory”. And there are two forms: A reduction in staffing numbers.

What is the procedure for redundancy?

Five-Step Redundancy Process

1. Explore Whether Or Not You Can Avoid Redundancies.
2. Identify The Employees You Will Make Redundant.
3. Hold Redundancy Consultations.
4. Giving Staff Notice.
5. Deciding On Redundancy Pay.

What are you entitled to if you are made redundant?

If you're being made redundant, you might be entitled to redundancy pay. There are 2 types of redundancy pay you could get: 'statutory' redundancy pay - what the law says you're entitled to. 'contractual' redundancy pay - extra money your contract says you can get on top of the statutory amount.

What should I do if I am made redundant?

Preparing for after redundancy

1. Help getting a new job.
2. Taking time off to look for work.
3. Check you got all the money you're entitled to.
4. Check if you have to pay tax on your redundancy pay.
5. Claiming benefits.
6. Help paying your rent or mortgage.
7. Get advice about any debts.
8. Get independent financial advice.

What benefits can I claim if I am made redundant?

Claiming benefits

If you've been made redundant or been told that you will soon be made redundant, there are 3 main types of financial support that could be available to you: Universal Credit. New Style Jobseeker's Allowance (New Style JSA) New Style Employment and Support Allowance (New Style ESA)

How long after being made redundant can I claim unfair dismissal?

Most employers pay SRP voluntarily. However, if you are an employer and do not pay an employee, a claim can be made for compensation for unfair dismissal or SRP. A claim can also be made by written notice. Employees must commence the claim within six months of the date of termination of employment.