Restructuring and reorganisation
Businesses need to adjust when necessary. Sometimes, results come under pressure and businesses need to adapt to the new reality. Restructuring then often offers a solution. Part of restructuring the business can be a (personnel) reorganisation, as personnel expenses often weigh heavily and an adjustment in the staffing therefore often provides a solution. Think of a reduction in FTEs or a divestment of activities. Reorganisations may also involve adjusting collective agreements, terms of employment, or pensions. This can lead to significant consequences, not only for the company, but also for the employees involved.
What is the impact of a restructuring or reorganisation on your organisation?
Going through a restructuring or reorganisation is not an easy task. The organisation is under a magnifying glass and often the continuity of the company is at stake. A restructuring requires a project-based approach, involving stakeholders such as the works council and trade unions at an early stage. Under these circumstances, an employer requires expertise and guidance to bring the project to a good result in a responsible, compliant and efficient manner.
Reorganising or not?
When considering a reorganisation, it is good to realise the following:
- A reorganisation requires lead time to meet all procedural steps
- A reorganisation requires a good preparation to avoid afterwards surprises
- Reorganisation requires courage: what is a good balance between opportunities and risks?
- Reorganisations have a considerable risk of disruption: how do you stick to your own course, without losing commitment from the works council, unions and staff?
Practical tips
- Periodically assess whether the conditions of employment in the company are still appropriate and in line with market practice
- Reassess the applicability of collective agreements and (industry) pension funds and intervene where necessary
- In case of a reduction, ensure a clear business plan and a modern social plan
- Know the applicable rules to understand what risks are justified
- Use the momentum: explore whether the need for intervention in the present, can lead to a better, more efficient organisation for the future
Because implementing a restructuring or reorganisation is not an easy task, it is wise to timely seek advice and guidance to bring the project to a good outcome, in a responsible and efficient manner.
What can van Benthem & Keulen do for you?
Our specialists guide comprehensive restructurings and reorganisations. We have the practical experience and specialised knowledge required to carry out a restructuring effectively. We advise (and take the lead if necessary) when it comes to project planning, contacts with unions and works councils, dismissal selection, placement processes and the execution. We estimate the required budget and manage risks. We often use a project team, in which our seasoned specialists advise on strategy and negotiate the settlements of individual contracts.
Recent cases
- Advising pharmaceutical and retail clients on the applicability of collective bargaining agreements and pension funds
- Planning and realisation of a restructuring in the ICT sector
- Advising on phased reorganisation in the financial services industry
- Advising on asset transactions: transfer of undertaking (TUPE) and pension
- Advising on dismissal selection and social plan
