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Currently, several companies are in the process of restructuring and reorganizing their organizations. Recently, Bijenkorf made 64 positions redundant. Spotify has also announced significant layoffs, and Tata Steel is cutting 800 jobs to remain competitive in the steel market. How should an employer approach a restructuring leading to redundancies?
A good preparation is essential, even if the restructuring needs to be implemented quickly. In the preparatory phase, a clear and concrete restructuring plan must be developed.
First and foremost, the restructuring plan should include an explanation of the necessity of the restructuring, also known as the "business case." This description should outline what the company's scenario would be without the relevant restructuring and what it would be with restructuring. When drafting this, consider the following elements (if applicable):
Additionally, the restructuring plan should detail the current organizational structure and the new organizational structure (before-and-after overview). It is important that the structure is based on the roles with their respective tasks and responsibilities, including the compensation level. New job descriptions should be created for any newly established positions.
Furthermore, it is essential to provide insight into the employee participation process. When will the Works Council (WC) be involved? Our advice is to involve the WC in a timely manner, such as by mentioning during a consultation meeting that you intend to reorganize. It is also important to develop a communication plan as part of the restructuring plan, applicable to both internal and external communication.
Finally, creating a clear timeline is relevant. When do you want to take each step?
The restructuring plan can then be used for negotiations on the social plan, a consultation request to the WC, negotiations with the employee about their position, and any dismissal procedures at the Employee Insurance Agency (UWV). It is a crucial preparatory document!
Are you considering a restructuring, and do you have questions about how to approach this process? We would be happy to assist you. Feel free to contact us!
Jaouad Seghrouchni, Senior Associate, Attorney at law, Employment & Employee Participation.
