What Employees’ Rights are When a Business Decides to Restructure
With the announcement that many high street retailers, such as House of Fraser, have had to cut costs by closing a number of stores due to a fall in profits, thousands of jobs are being put at risk.
As an employer, it’s important to know what rights employees are entitled to when a restructuring process begins.
In the unfortunate event that a company has no choice but to resort to redundancies, employees must be consulted at least 30 days before the first dismissal. This way, the employees will have a window in which they can search for other jobs.
But if the company has more than 100 employees, like House of Fraser, they must begin consultation at least 45 days before the first dismissal.
There may be opportunities for employees at risk of redundancy to be selected for alternative roles within the company, which includes being outsourced to other sites.
If, however, a redundancy is made, companies can offer outplacement support to those who have left employment. This can include help with writing CV’s, applying for jobs and preparing for interviews.
Our owner, Kirsten, recently contributed a feature on the topic to HR News, which you can read in full here.