Legal ruling will aid corporate restructures
Organisations looking to restructure by reducing the number of senior posts will find this process easier following a recent legal ruling, according to a leading Shropshire employment lawyer.
Alasdair Hobbs, Partner in the Employment Department of Shropshire law firm FBC Manby Bowdler LLP, says that employers now have much more leeway when it comes to considering redundant staff for newly created roles.
He says: “An Employment Appeals Tribunal found that an employer can apply a reasonable degree of subjectivity when determining the criteria for a new role and not be bound to re-appoint a redundant employee, but free to make an external appointment.”
The ruling came about when Samsung re-organised its print division. The claimant was one of three Heads of Department who were informed their roles would be abolished and merged into a new, single, position of Head of Sales. The claimant unsuccessfully applied for this post. He was assessed on a presentation and scored against competencies normally used in the annual appraisal process. He then unsuccessfully applied for a more junior role arising out of the re-structure. An outside candidate was eventually appointed.
Mr Hobbs continues: “Any employer considering a restructure involving redundancies is advised to seek legal advice first to ensure that the process follows the latest regulations and rulings. This latest finding by the Employment Appeals Tribunal should, however, make any restructuring process less complex.”
