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Employee Rights: Understanding Redundancy and Restructuring

Redundancy and restructuring can be some of the most stressful and uncertain times in an employee’s career.

When your role is affected by company-wide changes or downsizing, it can be difficult to know where you stand, what your rights are, and how to navigate the process. However, understanding your rights and being informed about the procedures involved can help ensure that you are treated fairly throughout the process.

In this blog, we’ll walk you through what redundancy and restructuring are, your rights as an employee during these processes, and how you can protect yourself if your job is impacted.

 

What Is Redundancy?

Redundancy occurs when an employer decides they no longer need a particular role, typically due to business changes such as downsizing, closure of a department, or the introduction of new technology. Redundancy can affect one or more employees and usually happens when there’s no longer a demand for the work performed by the affected position.

It’s important to note that redundancy is not the same as being unfairly dismissed. Redundancy is about the position becoming unnecessary, not about your performance or behavior as an employee.

 

What Is Restructuring?

Restructuring refers to changes in an organisation’s structure that can affect the roles, reporting lines, or departments within a business. This can be due to mergers, acquisitions, the introduction of new business strategies, or changes in the company’s financial situation.

Restructuring often leads to redundancies, but it can also involve redeployment, where employees are moved into different roles within the company, or retraining. It’s important to understand that restructuring doesn’t always mean job loss, but it often results in significant changes to your role or the overall company structure.

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What to Do If You Are Affected by Redundancy or Restructuring

If you are facing redundancy or restructuring, here are some steps to help you navigate the process:

1. Review Your Employment Contract

Check your employment agreement for clauses related to redundancy, severance pay, and the notice period. Some contracts may outline additional protections or benefits, such as redundancy payments or priority for alternative roles.

2. Engage in the Consultation Process

Ensure that you fully engage in the consultation process. Ask questions, raise concerns, and explore all alternatives to redundancy or restructuring, such as redeployment or retraining opportunities.

3. Understand Your Entitlements

Make sure you know what you’re entitled to, including redundancy payments, notice periods, and severance pay. If you are unsure, it’s worth seeking professional advice from an employment lawyer.

4. Seek Legal Advice

If you feel that the redundancy or restructuring process is being carried out unfairly or if you believe your rights are being violated, it’s important to seek legal advice. An employment lawyer can help you understand your options, whether it’s negotiating with your employer, pursuing a claim for unfair treatment, or seeking compensation.

 

We can Help!

At Mahi Law, we are committed to helping employees like you through every step of the redundancy and restructuring process.

Want a free consultation?  

Fill out this form to get in touch – or contact us at [email protected], or on 027 425 2231. 

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