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

2. www.olswang.com1 Question 1 Are any employees’ roles going to change/disappear as a result of the reorganisation?

3. www.olswang.com2 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

4. www.olswang.com3 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

5. www.olswang.com4 Question 2 If so, how many employees will be affected?

6. www.olswang.com5 If so, how many employees will be affected? UK perspective Collective consultation obligations Meaning of “establishment” Individual consultation obligations

7. www.olswang.com6 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

8. www.olswang.com7 Question 3 When does the business want to implement the reorganisation?

9. www.olswang.com8 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

10. www.olswang.com9 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

11. www.olswang.com10 Question 4 What is the budget for the reorganisation?

12. www.olswang.com11 What is the budget for the reorganisation? UK perspective Redundancy pay Notice pay Holiday pay

13. www.olswang.com12 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

14. www.olswang.com13 Question 5 Will the employees be offered settlement?

15. www.olswang.com14 Will the employees be offered settlement? UK perspective Potential claims Legal costs Enhanced redundancy pay Compromise agreements

16. www.olswang.com15 Will the employees be offered settlement? EU perspective To avoid court trials: additional payment often offered Keep in budget when planning

17. www.olswang.com16 Questions?

18. Key employment issues for reorganisations: UK and EU perspectives For more information please contact: Melanie LaneManteo Eisenlohr +44 20 7067 3653+49 30 700 171 159 melanie.lane@olswang.commanteo.eisenlohr@olswang.com melanie.lane@olswang.commanteo.eisenlohr@olswang.com