Business Restructuring
Reorganising your business is a significant decision that affects your people, your operations, and your legal obligations. We manage the entire restructuring process on your behalf, ensuring every consultation is handled properly and every contract change is legally sound.
Getting Restructuring Right
Organisational restructuring covers a wide range of changes, from merging departments and creating new roles to removing layers of management, changing reporting lines, or fundamentally redesigning how your business operates. Whatever the driver, whether it is growth, cost reduction, a change in strategy, or a response to market conditions, the legal framework is the same. If the restructure results in roles disappearing or changing significantly, you are likely dealing with redundancy situations under section 139 of the Employment Rights Act 1996. If 20 or more employees are affected within 90 days at one establishment, you must also comply with the collective consultation requirements set out in section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992.
The legal risks of a poorly managed restructure are real and can be costly. Employees with two or more years of service can bring unfair dismissal claims if they are dismissed without a fair procedure or if the redundancy is not genuine. If you try to change someone's role, hours, or terms without following the correct process, you risk constructive dismissal claims. Failing to collectively consult when required can trigger a protective award of up to 90 days' gross pay per affected employee. Beyond the legal exposure, a restructure that is handled insensitively damages trust across the whole organisation, increases staff turnover, and undermines the very improvements you set out to achieve.
At Rebox HR, we manage restructuring projects from start to finish. We help you build a clear business rationale, map out the proposed changes, identify which roles are at risk, design fair selection criteria where needed, and run every consultation meeting with your managers. We draft all the letters, prepare manager scripts, calculate redundancy payments and revised contract terms, and handle appeals. Whether you are reorganising a team of five or restructuring an entire company, we make sure the process is legally compliant, properly documented, and handled with the sensitivity your people deserve.
What We Cover
Practical, expert support across every aspect of restructuring for your business.
Restructuring Strategy and Business Rationale
Every restructure needs a clear, documented business rationale that can withstand scrutiny. We work with you to articulate why the changes are necessary, whether the driver is financial pressure, operational efficiency, strategic realignment, or growth. We review your current organisational structure, map out the proposed structure, and identify every role that is affected. This groundwork is essential because, if any resulting dismissals are challenged at tribunal, you will need to demonstrate that there was a genuine business reason for the changes. We prepare all the supporting documentation so your position is robust from the outset.
Role Mapping and Selection Criteria
When a restructure creates fewer roles than currently exist, or when existing roles change so significantly that they are effectively new positions, you need a fair and transparent process for deciding who fills those roles. We design objective selection criteria tailored to your business, covering skills, qualifications, performance, and relevant experience. We build scoring matrices, train your managers on how to apply the criteria consistently, and moderate the results to identify any unintended bias. Where bumping applies (offering an at-risk employee a role currently held by someone else with less claim to it), we advise on whether this is appropriate and how to manage it fairly.
Individual and Collective Consultation
Consultation is not a formality. It is a legal requirement, and tribunals look closely at whether it was carried out meaningfully. For individual consultation, we attend meetings alongside your managers to ensure every affected employee is told why their role is at risk, given the opportunity to ask questions and suggest alternatives, and treated fairly throughout. Where collective consultation is required under section 188 of TULRCA 1992 (20 or more redundancies proposed within 90 days at one establishment), we help you elect employee representatives, prepare the statutory disclosure letter, file form HR1 with the Insolvency Service within the required timescales, and chair consultation meetings.
Contract Variations and New Terms
Many restructures involve changing existing employees' contracts, whether that means a new job title, different responsibilities, revised hours, or updated reporting lines. You cannot simply impose these changes unilaterally. Under common law principles and section 4 of the Employment Rights Act 1996, any material change to the terms of employment must be agreed with the employee. We manage the variation process for you, drafting the proposed new terms, consulting with employees about the changes, and issuing updated written statements of employment particulars. Where employees refuse to accept the changes, we advise on the options available to you, including termination and re-engagement on new terms, and the legal risks of each approach.
Communication and Change Management
How you communicate a restructure matters as much as the legal procedure itself. Poorly timed announcements, inconsistent messaging, or a lack of transparency can cause panic, damage morale, and lead to your best people looking for jobs elsewhere. We help you plan your communications strategy, including who to tell first, what to say at each stage, and how to handle questions from the wider team. We prepare manager briefing packs and scripts so everyone delivering the message is consistent, confident, and sensitive. After the restructure is complete, we help you address any remaining concerns and support your managers in rebuilding team cohesion.
Letters, Documentation, and Compliance
A restructuring process generates a significant volume of paperwork, and every document needs to be accurate and legally sound. We draft all the correspondence for you: the initial announcement, at-risk letters, invitations to consultation meetings (including the right to be accompanied), meeting notes, selection scoring records, outcome letters confirming redundancy or redeployment, contract variation letters, and appeal acknowledgements and outcomes. If collective consultation applies, we prepare the section 188 disclosure letter covering all the information required by law. Every document is tailored to your specific situation and designed to protect your business if any decision is later challenged.
How We Help
A clear, structured approach from start to finish.
Initial Assessment
You talk us through what you want to achieve and why. We review your current structure, the proposed changes, and the number of people affected. We advise on the legal requirements, likely timescales, and whether collective consultation obligations apply. This initial conversation is free and confidential, with no obligation to proceed.
Planning and Consultation
We build the full restructuring plan, draft selection criteria and scoring matrices where needed, prepare all consultation documentation, and guide your managers through every meeting. We handle the employee communications, attend consultation sessions alongside your team, and ensure alternatives to redundancy are genuinely explored and documented at each stage.
Implementation and Support
Once consultation is complete, we issue outcome letters, process contract variations for employees moving into new roles, calculate redundancy payments and final settlements for those leaving, and manage any appeals. We also help you communicate the final structure to the wider team and support your managers in settling everyone into the new way of working.
Frequently Asked Questions
What is the difference between restructuring and redundancy?
Restructuring is the broader process of reorganising your business, which might involve creating new roles, merging teams, changing reporting lines, or redesigning how departments operate. Redundancy is a specific legal concept defined in section 139 of the Employment Rights Act 1996, where the need for employees to carry out work of a particular kind has ceased or diminished. A restructure may result in redundancies if roles are removed or reduced, but not every restructure leads to job losses. Some restructures involve moving people into different roles, changing terms, or adding new positions. We help you identify early on whether your proposed changes will trigger redundancy obligations.
When does collective consultation apply to a restructure?
Collective consultation is required under section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 when you propose to dismiss 20 or more employees as redundant at one establishment within 90 days. For 20 to 99 redundancies, consultation must begin at least 30 days before the first dismissal. For 100 or more, it must begin at least 45 days before. You must also file form HR1 with the Insolvency Service within the same timescales. Failure to comply can result in a protective award of up to 90 days' gross pay per affected employee. We manage the entire collective consultation process, including the election of employee representatives and preparation of the statutory disclosure letter.
Can I change an employee's role or contract as part of a restructure?
You can propose changes, but you cannot impose them unilaterally. Under section 4 of the Employment Rights Act 1996, employees must receive a written statement of any changes to their employment terms within one month. Material changes such as a different job title, new responsibilities, revised working hours, or a change in pay require the employee's agreement. If an employee refuses to accept the new terms, you have several options, including continued negotiation, offering a trial period in the new role, or, as a last resort, terminating the existing contract and offering re-engagement on the new terms. That final option carries significant legal risk and should only be considered after taking proper advice. We guide you through the process step by step.
What is bumping and do I have to consider it?
Bumping is where an employee whose role is at risk of redundancy is moved into a different role, and the person currently in that role is made redundant instead. There is no statutory obligation to offer bumping, but employment tribunals do expect employers to consider it as part of a fair redundancy process. Whether bumping is reasonable depends on the circumstances, including the size of the organisation, the skills of the employees involved, and the practicalities of the swap. We help you assess whether bumping is appropriate in your situation and, if it is, how to manage the process fairly for everyone affected.
How do I design fair selection criteria for a restructure?
Selection criteria must be objective, measurable, and free from discrimination. Common criteria include relevant skills and qualifications, performance records, attendance history (excluding absence related to disability, pregnancy, or family leave), and disciplinary record. Length of service alone is generally considered unfair as it can indirectly discriminate on the basis of age. We design bespoke scoring matrices for your restructure, train your managers to apply the criteria consistently, and moderate the scores before they are shared with employees during consultation. This ensures your process is fair and defensible.
What are the risks if we get the restructuring process wrong?
The risks are substantial. Employees with two or more years of continuous service can bring unfair dismissal claims if the process is procedurally unfair or the redundancy is not genuine. Compensation for unfair dismissal is capped at the lower of 52 weeks' pay or the current statutory maximum, but this cap does not apply in discrimination or whistleblowing cases. If you fail to collectively consult when required, the tribunal can make a protective award of up to 90 days' gross pay per affected employee, which is payable on top of any other compensation. Constructive dismissal claims can arise if you change someone's terms without proper consultation. Beyond the legal costs, a badly handled restructure damages trust, increases staff turnover, and undermines the business improvements you set out to achieve.
Do employees have the right to be accompanied at restructuring meetings?
Yes. Under section 10 of the Employment Relations Act 1999, employees have the right to be accompanied at any disciplinary or grievance hearing by a trade union representative or a work colleague. In the context of a restructure, this right applies to formal consultation meetings where redundancy is being discussed. The companion can address the meeting, confer with the employee, and present the employee's case, but they cannot answer questions on the employee's behalf. If the chosen companion is unavailable on the proposed date, the employer must offer a reasonable alternative within five working days. We make sure this right is clearly communicated in every invitation letter we draft.
How long does a restructuring process typically take?
The timeline depends on the scale and complexity of the changes. A small restructure affecting a handful of roles might be completed in four to six weeks. Larger programmes involving collective consultation have mandatory minimum timescales: at least 30 days for 20 to 99 redundancies, and at least 45 days for 100 or more. Beyond the legal minimums, you need to allow time for genuine consultation, which means giving employees the opportunity to respond to proposals, suggest alternatives, and have their input properly considered. Rushing the process is one of the most common mistakes employers make and is regularly criticised by tribunals. We build a realistic project plan at the outset so you know exactly what to expect and when.
“Rebox HR kept me right hiring my first employees. They are engaging and friendly, immediately putting you at ease. Highly recommended for any small business.”
Related Services
Redundancy Support
If your restructure results in job losses, we manage the full redundancy process, including consultation, selection, payments, and appeals.
Redundancy Support →TUPE Transfers
If your restructure involves transferring staff to or from another organisation, TUPE regulations apply. We manage the entire transfer process for you.
TUPE Transfers →Staff Consultation
Restructuring requires meaningful consultation with affected employees. We manage the consultation process, ensuring legal compliance and clear communication.
Staff Consultation →Planning a Business Restructure?
Whether you are reorganising a single team or redesigning your entire business, we are here to help. Book a free, no-obligation consultation and let us take the complexity out of your restructuring project.
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