Redundancy, Restructuring

Redundancy and Restructuring

Recognising a redundancy situation

A redundancy situation may arise where an employer’s need for employees to carry out work of a particular kind has ceased or diminished, or is expected to do so. In the education sector, this may occur for a range of operational financial, or educational reasons. Common examples include a forecast or actual budget deficit, a sustained or anticipated fall in pupil or student numbers, changes to funding arrangements, organisational reconfiguration, or curriculum changes that reduce the need for certain subjects, roles, or specialisms.

Redundancy is a potentially fair reason for dismissal under employment law, provided that it is handled in a fair, transparent, and reasonable manner. Employers are expected to demonstrate that a genuine redundancy situation exists, that appropriate alternatives have been considered, and that the process followed is consistent with statutory requirements, contractual obligations, and good employment practice.

Restructuring

Restructuring of the workforce often occurs in response to similar pressures but does not necessarily result in a reduction of overall staffing levels. A restructure may be undertaken to ensure that the organisation is appropriately resourced and organised to meet its current and future needs. This may involve changes to roles, responsibilities, reporting lines, job descriptions, working patterns, or contractual terms, such as hours of work or location.

In some cases, a restructure may lead to redundancies where fewer roles are required, where roles are fundamentally changed, or where employees do not secure a position within the new structure. In other cases, the same number of employees may continue to be employed, but on revised terms and conditions or in different roles.

Whether a business proposal involves redundancy, restructuring, or a combination of both, meaningful consultation with employees and, where applicable, recognised trade unions or employee representatives should be entered into at the earliest opportunity.

Alternatives to redundancy

Employers should consider alternatives to redundancy wherever possible, such as redeployment, reduction in agency or temporary staff, voluntary redundancy, or changes to working arrangements. Where redundancies cannot be avoided, a fair process must be applied to avoid claims of unfair dismissal.

Using a collective redundancy process when required

Where it is proposed to dismiss 20 or more employees within a period of 90 days in one establishment, a collective redundancy process is required. This involves longer time frames and appointment of representatives, than in a non-collective redundancy process. Some school policies, particularly those drawn up in consultation with trade unions, can often require a process that looks similar to a collective consultation process, even where the threshold is not met. Regard should always be had to your school’s redundancy or restructure policy.

Advice from our team should always be taken where you are contemplating a redundancy or restructure. These processes can be lengthy and so early advice is recommended.

What's in this topic area

In this topic area, you’ll find Guidance and our Resources, which includes our template policy and a wide range of letters and other template resources to support managing restructuring and redundancy processes.

If you require guidance or support in managing restructuring and redundancy processes, please do not hesitate to contact us.

Training and development

Our HR training programme incorporates a range of courses to support you in your role and facilitate your professional development within the education sector.  You can view the portfolio of programmes HERE.  

How we can help you

Restructuring of the workforce can occur in the context of a redundancy situation but does not necessarily entail a staffing reduction: sometimes there is a need to change existing contracts of employment - such as the hours that people work or the tasks that they perform - to better suit the changing needs of the organisation, but the same number of people are still required to perform the work.

These areas of changing staffing need engage sometimes complex areas of law and it is advisable that advice  is taken on the particular circumstances before embarking on a change exercise.