Reorganisation and reemployment – things to think about

Reorganisation and reemployment – things to think about

Many companies face major financial challenges due to the current circumstances and may be forced to undergo reorganisation that results in redundancies. For employers, the process and its various phases involve a number of steps to keep track of, including reemployment.

Reorganisation – a multi-step process

Many things need to be done as part of reorganisations resulting in redundancies, and there can be many parties involved. The process is extensive and involves several steps, including:

  • reviewing relocation options
  • making a risk assessment from a work environment perspective
  • creating a priority list
  • submitting a negotiation request
  • negotiating and executing the decisions made
  • being vigilant if there is a re-employment right for dismissed employees in the event of new employment

Remember that you as a company have a duty to negotiate, regardless of whether you have a collective agreement linked to the business. If you have a collective agreement, there is almost always a chance that the employees you make redundant will be covered by reorientation support.

Read more in the article Termination of employment and giving notice - the responsibility of the employer

Reemployment and preferential rights

An important consideration if things improve and you need to recruit new staff is that there may be preferential rights for reemployment. Preferential rights apply for up to nine months from the last day of employment for those who were previously made redundant due to a lack of work. The conditions for having preferential rights vary depending on the employee’s type of employment at the company, such as permanent employment or seasonal employment. For preferential rights to apply, the employee must have lodged a claim with their employer regarding reemployment, and they must of course have the right qualifications for the new position.

What if the new position is not a full-time job?

In the event that the company has a higher workload requiring capacity to be increased, but not to the extent of a full-time position, a preferential right of reemployment still applies for employees who have previously been made redundant. However, you have the opportunity to offer this increase to existing part-time employees who have registered their interest in more work before offering this to former employees with priority for reemployment. This is provided that these employees have the right skills for the role.

At Azets, we have extensive experience in reorganisations and redundancies. If you as an employer have questions or concerns about this, please don’t hesitate to get in touch.

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