Restructure Mapping and Redundancies

An overview of the relevant processes

Author: Sophie George

Key Contact: Chris Aldridge

As economic difficulties continue, difficult decisions might be on the agenda for some employers. Restructuring is a common business process undertaken to improve efficiency, reduce costs, or adapt to changing market conditions. However, restructuring often leads to redundancies, requiring employers to follow a fair and legally complaint process. To help identify the pinch points (and where you might need more advice), we’ve put together an overview of the restructure mapping and redundancy processes.

Contact our Employment team for detailed guidance and advice.   

What is restructure mapping?

Restructure mapping is the process of analysing an organisation’s structure to determine necessary changes, including workforce adjustments.  It helps employers make informed decisions about job roles, responsibilities, and staffing levels.

Key steps in restructure mapping

1. Assessing business needs
   • Identify the reasons for restructuring (e.g. financial constraints technological changes, mergers, or operational inefficiencies).
   • Define the objectives, such as cost reduction, role consolidation, or departmental realignment.

2. Identifying impacted roles
   • Analyse job functions and determine which roles are essential, redundant, or need modification.
   • Map out potential new structures, ensuring they align with business goals and legal obligations.

3. Redundancy pool and selection criteria
   • If job reductions are necessary, establish redundancy pools based on employees performing similar functions.
   • Apply fair and objective selection criteria, such as:
     • Skills, experience, and qualifications.
     • Performance records.
     • Attendance (excluding disability- or maternity-related absences).

4. Consultation and communication
   • Employers must engage in individual consultation (and collective consultation if 20+ employees are affected).
   • Employees should be informed about the rationale for restructuring, selection criteria, and potential alternatives.

Redundancies: legal considerations and employer duties

Redundancy is a form of dismissal when an employer no longer needs an employee’s role due to business changes. UK employment law requires employers to handle redundancies fairly and provide affected employees with their legal entitlements.

Legal framework for redundancies

1. Fair redundancy process
   • Employers must have a genuine redundancy situation, such as business closure, workplace relocation, or reduced demand for work.
   • Employees selected for redundancy must be chosen based on objective and non-discriminatory criteria.

2. Consultation requirements
   • Individual consultation: employers must meet with affected employees to explain redundancy proposals and explore alternatives.
   • Collective consultation (for 20+ redundancies within 90 days or less):
     • Must begin at least 30 days before dismissal or 45 days for 100+ redundancies – the government is proposing to double the minimum time limit from 45 to 90 days when an employer is proposing to dismiss 100+ employees.
     • Employers must consult with employee representatives or trade unions.
     • A HR1 Form must be submitted to the government.

3. Suitable alternative employment
   • Employers must offer suitable alternative roles where possible. A role is deemed a suitable alternative if it closely aligns with the employee’s existing position. Factors influencing this will include their job content/tasks, status, pay and fringe benefits, hours, location and the employee’s skills and experience.
   • Employees are entitled to a four-week trial period to assess suitability.
   • If an employee unreasonably refuses a suitable role, they may lose redundancy pay.
   • Employers must offer suitable alternative roles to employees who are pregnant, on maternity leave or after having returned from maternity or neonatal care leave.

4. Redundancy pay and notice periods
   • Employees with at least two years’ service are entitled to statutory redundancy pay. This is calculated based on an employee’s age and their length of service, or:
   • Half a week’s pay per year of service (under age 22)
   • One week’s pay per year (ages 22-40)
   • One and a half weeks’ pay per year (age 41+)
   • Employers must provide a statutory notice period.

Best practices for employers during restructuring

• Early planning: begin restructure mapping early to anticipate challenges and ensure a smooth transition.
• Transparent communication: keep employees informed and engaged throughout the process to maintain trust and morale.
• Legal compliance: follow redundancy laws to avoid unfair dismissal claims and disputes.
• Support for employees: provide career coaching, CV workshops, and references to help employees transition.

Restructure mapping is a critical tool for businesses navigating change, ensuring that redundancies are strategic, fair, and legally compliant. By following best practices and UK employment law, employers can minimise disruption and support employees through the transition process.

For help with restructuring queries or advice on the legal framework for redundancies, contact our Employment team.