Key employment issues for reorganisations: UK and EU perspectives Melanie Lane Manteo Eisenlohr

Question 1 Are any employees’ roles going to change/disappear as a result of the reorganisation?

Are any employees’ roles going to change/ disappear as a result of the reorganisation? UK perspective If so, employees will be redundant Substantial change = redundancy if not agreed Potentially fair reason for dismissal – but process

Are any employees’ roles going to change/ disappear as a result of the reorganisation? EU perspective With what sort of measures will the employees’ roles disappear? These measures must create a viable legal ground for dismissals Change of roles may require terminations Works Council involvement Careful: Cross-border TUPE

Question 2 If so, how many employees will be affected?

If so, how many employees will be affected? UK perspective Collective consultation obligations Meaning of “establishment” Individual consultation obligations

If so, how many employees will be affected? EU perspective Different thresholds for different Works Council/Union participation: from information rights to negotiation on compensation packages Notification requirements to official authorities of the employment agency: terminations ineffective if infringed

Question 3 When does the business want to implement the reorganisation?

When does the business want to implement the reorganisation? UK perspective Timeframe for collective consultation and HR1 Election of employee representatives required? Timeframe and practicalities of individual consultation

When does the business want to implement the reorganisation? EU perspective Timelines and planning of the essence! Bear in mind foreseeable developments in the establishment, such as Works Council elections Partially no statutory time restriction for negotiation process

Question 4 What is the budget for the reorganisation?

What is the budget for the reorganisation? UK perspective Redundancy pay Notice pay Holiday pay

What is the budget for the reorganisation? EU perspective Generally the same! In some countries: no statutory redundancy pay – but agreement with Works Council In Germany: statistically c. 30% go to court and in the end negotiate c. +20% higher severance

Question 5 Will the employees be offered settlement?

Will the employees be offered settlement? UK perspective Potential claims Legal costs Enhanced redundancy pay Compromise agreements

Will the employees be offered settlement? EU perspective To avoid court trials: additional payment often offered Keep in budget when planning

Questions?

Key employment issues for reorganisations: UK and EU perspectives For more information please contact: Melanie LaneManteo Eisenlohr