1. © BPE 2008 Credit Crunch Conference BPE Solicitors 26 November 2008

2. © BPE 2008 A time to restructure? John TurnbullAssociate Solicitor Employment Department 26 November 2008

3. © BPE 2008 Contents Business reorganisation: 2 key questions Examples Practical considerations Statutory procedure Awards & payments

4. © BPE 2008 Business reorganisation – what is it all about? 2 key questions What is company structure now? What do you want it to be i.e. the ‘Plan’?

5. © BPE 2008 Example structure 14 people Now MD GM OPS Director WA 1 WA 2 WS 3 FD 123 Sales Director 1 South 2 Midlands 3 North

6. © BPE 2008 Example structure: MD OPS Dr WA 1 WA 2 FD 12 Sales Director 1 South 2 North 10 people Proposed

7. © BPE 2008 Back to structure Roles threatened: i.General Manager Role split between Operations Director and Managing Director GM can’t do MD’s job Selection necessary? Bumping

8. © BPE 2008 Structure ii.Warehouse Proposal to lose supervisor and have Operations Director supervise Supervisor role is stand alone £5k more salary than warehouse operative Would supervisor fit warehouse role? Retraining? Trial period? Use consultation to make decisions

9. © BPE 2008 Structure iii.Finance Straightforward number reduction Pool? Selection matrix  Objective criteria  Consider old appraisals –Step 1: Agree principle / pool –Step 2: Agree the criteria –Step 3: Mark criteria

10. © BPE 2008 Structure iv.Sales Straight selection again 3 areas to 2 – Think about contractual ability to travel Willingness to travel VR process –Right of refusal –It’s still a dismissal

11. © BPE 2008 Practical issues Statutory dismissal procedure Voluntary redundancy Payments in lieu of notice (restrictive covenants) Collective consultation Payments Alternatives

12. © BPE 2008 Summary Costs Structure A to B

13. © BPE 2008 Credit Crunch Conference BPE Solicitors Iain Garfield Partner, Commercial 26 November 2008

14. © BPE 2008 Brand Protection invest now to protect the future how much is your brand worth? how to prioritise in today’s economic climate

15. © BPE 2008 Trading terms read the small print give and take – is something better than nothing? pass on the risk now is the time to concentrate on the terms on which your business is operating

16. © BPE 2008 Due diligence do your homework risk aversion – take a risk but protect yourself how creditworthy are your customers? how reliable are your suppliers? take advantage of the economic climate to negotiate more favourable terms?

17. © BPE 2008 Minimise risk guarantees (parent company or directors) charges retention of title credit insurance invoice discounting factoring

18. © BPE 2008 Price, payment and the cash ability to increase prices (or the ability to just review prices)? how to deal with inflation remedies for late payment letters of credit, or payments on account recovering unpaid debts dispute resolution and litigation – the ultimate weapon (but last resort?)

19. © BPE 2008 Thank you John TurnbullIain Garfield Associate SolicitorPartner 01242 24823401242 248246 john.turnbull@bpe.co.ukiain.garfield@bpe.co.uk