Over the past eight to 10 years, many businesses and organizations have needed to restructure and reorganize their workforce to meet the demands of a changing, challenging and highly competitive economy. In order to successfully compete in a competitive job market, businesses need to constantly re-evaluate their daily operations and structuring. Workplace restructuring can be a complex and costly process without undergoing the proper execution.
In order to restructure your business, you need to have a legitimate business purpose. There are important legal obligations that must be complied with in order for a company to successfully restructure itself without incurring liabilities. For example, any change to an employee’s salary or benefits may leave to wrongful dismissal liability. Whenever a restructuring may impact employee jobs and positions, there are strict processes that must be followed. Employer must act in good faith by documenting all proposals, communicating the intentions of the business to the employees, and actively attempting to provide employees with timely and accurate information.