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Global Law Experts top search results to tackle law in Employment Restructuring: Tailored solutions for every legal challenge. Let experienced lawyers guide you through legal disputes and challenges with law insights and expertise knowledge. Our members hold proven strategies and solutions for every complex legal need.
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The Employment Restructuring Law Practice is a specialized field that provides legal guidance to employers undertaking significant organizational changes that impact their workforce. This practice is crucial during major business events such as mergers, acquisitions, downsizings, or reorganizations. Practitioners in this area advise companies on the legally compliant process for implementing mass layoffs or redundancies, ensuring that all actions adhere to applicable labor laws and regulations. The scope of work includes developing fair and objective selection criteria to mitigate risks of discrimination claims, advising on mandatory notice periods and severance pay obligations, and drafting all necessary legal documentation, such as separation agreements. The primary goal is to help companies achieve their strategic business objectives while ensuring that the rights of affected employees are respected and legal risks are minimized.
Employment restructuring is the process by which a company makes strategic changes to the size, composition, or roles of its workforce to adapt to new business goals or economic conditions. This can include a wide range of actions, such as downsizing through layoffs or redundancies, reorganizing departments or divisions, redeploying employees to different functions, or changing job roles and responsibilities. It is a tool used to improve efficiency, reduce costs, or integrate businesses following a merger.
While the terms are often used interchangeably, there is a legal distinction. Redundancy occurs when a specific job position is eliminated because the work is no longer required by the business, leading to the termination of the employee in that role. It focuses on the position, not the person. A layoff can be a broader term that includes redundancies, but it can also refer to a temporary suspension of employment due to a lack of work, with the possibility that the employee may be recalled later.
The legal process for making a position redundant requires employers to follow several key steps. First, there must be a legitimate business justification for eliminating the role. The employer must then adhere to a fair process, which often includes a duty to consult with affected staff about the potential redundancy. Following this, employers are typically required to provide a statutory notice period before the termination and must pay any legally mandated severance payments.
To avoid discrimination claims, a company must select employees for redundancy using criteria that are objective, fair, and consistently applied across all affected staff. The selection criteria should be based on legitimate business-related factors, such as an employee’s skills, qualifications, performance history, and disciplinary record. It is illegal to make redundancy selections based on an employee’s protected characteristics, such as age, race, gender, religion, or disability.
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