Guide to Restructuring a Cross-Border Workforce

01. Is there a concept of redundancy - based on a shortage of work or other economic reasons - as a justified reason to dismiss employees in your jurisdiction? If so, how is it defined?

02. In brief, what is the required process for making someone redundant?

03. Does this process change where there is a “collective redundancy”? If so, what is the employee number threshold that triggers a collective redundancy?

04. Do employers need to consult with unions or employee representatives at any stage of the redundancy process? If there is a requirement to consult, does agreement need to be reached with the union/employee representatives at the end of the consultation?

05. If agreement is not reached, can the restructure be delayed or prevented? If so, by whom?

06. What does any required consultation process involve (i.e. when should it commence, how long should it last, what needs to be covered)? If an employer fails to comply with its consultation obligations, what remedies are available?

07. Do employers need to present an economic business rationale as part of the consultation with unions/employee representatives? If so, can this be challenged and how would such a challenge normally be made?

08. Is there a requirement or is it best practice to consult employees individually (whether or not the employer is also legally required to collectively consult employees)?

09. Are there rules on the selection of individual employees for redundancy?

10. Are there any specific categories of employees who an employer is prohibited from making redundant?

11. Are there categories of employees with enhanced protection (e.g., union officials, employees on sick leave or maternity/parental leave, etc)?

12. What payments are employees entitled to when made redundant? Do these payments need to be made within a specified period?  Are there any other requirements, such as giving contractual notice, payments into a central fund, etc.

13. If employees are entitled to redundancy/severance payments, are there eligibility criteria and how is the payment calculated? 

14. Do employers need to notify local/regional/national government and/or regulators before making redundancies? If so, by when and what information needs to be provided?

15. Is there any obligation on employers to consider alternatives to redundancy, including suitable alternative employment?

16. Do employers need to notify local/regional/national government and/or regulators after making redundancies, e.g. immigration department, labour department, pension authority, inland revenue, social security department? If so, by when and what information needs to be provided?

17. If an employee is not satisfied with the decision to make them redundant, do they have any potential claims against the employer? If so, what are they and in what forum should they be brought, e.g. tribunal, arbitration, court? Could a union or employee representative bring a claim on behalf of an employee/employees and if so, what claim/s and where should they be brought?

18. Is it common to use settlement agreements when making employees redundant?

19. In your experience, how long does it normally take to complete an individual or collective redundancy process?

20. Are there any limitations on operating a business for a period following a redundancy, like a prohibition on hiring or priority for re-hire being given to previous employees?

26. Can an employer reduce the hours, pay and/or benefits of an employee?

27. Can an employer rely on an express contractual provision to vary an employment term?

28. Can an employment term be varied by implied conduct?

29. If agreement is required to vary an employment term, what are the company’s options if employees refuse to agree to the proposed change?

30. What are the potential legal consequences if an employer varies an employment term unilaterally?

Areas to Watch