How Business Restructuring Employment Law Firms Can Help Your Business

Twain Mark May 5, 2023Last Updated: May 5, 2023

32 4 minutes read

Businesses face many challenges in today’s economy, and one of the most difficult challenges is the need to restructure. Whether due to financial difficulties or changes in the market, restructuring can be a complex and challenging process. One area that requires particular attention during restructuring is employment law. This blog explores the importance of restructuring employment law and how business restructuring law firms can help your business.

Restructuring is an inevitable part of doing business, and employment law plays a crucial role in the process. It involves a range of issues, such as redundancy, changes to terms and conditions, transfers of employment, and discrimination and harassment. Employers must ensure that they

comply with employment law requirements during restructuring to avoid legal disputes and negative publicity.

In recent years, there has been an increasing focus on the importance of employee rights and protections during restructuring. Governments around the world have introduced new legislation to ensure that employees are treated fairly during restructuring. For example, in the UK, employers are required to consult with employees and their representatives before making redundancies, and failure to do so can result in legal action.

One of the most important aspects of restructuring employment law is redundancy. Redundancies must be handled carefully to avoid legal disputes and negative publicity. Employers must follow a fair and transparent process, including consultation with employees and their representatives, identifying suitable alternative employment opportunities, and offering suitable redundancy packages.

Changes to terms and conditions of employment are another key area of restructuring employment law. Employers must ensure that any changes are implemented in accordance with employment law requirements, including consultation with employees and their representatives, and providing adequate notice of any changes.

Transfers of employment can also be complex, and employers must ensure that they comply with employment law requirements, such as informing and consulting employees, and ensuring that their terms and conditions of employment are protected.

Discrimination and harassment can be a particular risk during restructuring, as employees may feel that they are being unfairly treated. Employers must have policies and procedures in place to prevent and deal with such issues, and ensure that all employees are treated fairly and with respect.

Business restructuring law firms can provide valuable support and expertise during the restructuring process. They can advise on employment law requirements, draft employment agreements, manage redundancy processes, and provide support in the event of discrimination and harassment claims.

When engaging a business restructuring law firm, it is important to choose a firm with expertise in both employment law and business restructuring. Some of the key factors to consider when selecting a business restructuring law firm include their experience, reputation, and track record of success in similar cases.

Understanding Employment Law in Restructuring

Employment law is a complex area of law that regulates the relationships between employers and employees. It covers a wide range of issues, including hiring, firing, discrimination, and harassment. During a restructuring, employment law becomes particularly important as it affects the rights of employees and the obligations of employers.

Employment law issues that can arise during restructuring include:

Redundancies: When a business undergoes a significant restructuring, it may need to make redundancies. Redundancies must be handled carefully and in accordance with employment law to avoid legal disputes and negative publicity.
Changes to terms and conditions: Restructuring can result in changes to the terms and conditions of employment for existing employees. These changes must be implemented in accordance with employment law, and employees must be consulted and informed of the changes.
Transfers of employment: In some cases, a business may transfer part or all of its operations to another company. Employment law sets out the obligations of employers in relation to the transfer of employment, including the requirement to inform and consult employees.
Discrimination and harassment: Restructuring can increase the risk of discrimination and harassment claims as employees may feel that they are being unfairly treated. It is important for employers to have policies and procedures in place to prevent and deal with such issues.

The Importance of Business Restructuring Law Firms

Restructuring employment law requires specialist knowledge and expertise. By engaging a business restructuring law firm, businesses can ensure that they comply with employment law requirements, avoid legal disputes, and protect the rights and interests of their employees.

Business restructuring law firms can provide a range of services to support businesses during restructuring. These services include:

Advising on employment law requirements: Business restructuring law firms can provide expert advice on the legal requirements for restructuring employment law. They can help businesses to understand their obligations and develop a strategy that is compliant with employment law.
Drafting employment agreements: Employment law agreements, such as redundancy and transfer agreements, need to be drafted carefully to ensure that they are legally enforceable. Business restructuring law firms can draft these agreements and ensure that they are compliant with employment law requirements.
Managing redundancy processes: Redundancy processes can be complex and require careful management to avoid legal disputes. Business restructuring law firms can manage the redundancy process and ensure that it is compliant with employment law.
Advising on discrimination and harassment issues: Discrimination and harassment can have serious consequences for businesses during restructuring. Business restructuring law firms can advise on policies and procedures to prevent such issues and provide support in the event of a claim.

Top Business Restructuring Law Firms

When engaging a business restructuring law firm, it is important to choose a firm with expertise in both employment law and business restructuring. Some of the top business restructuring law firms include:

Skadden, Arps, Slate, Meagher & Flom LLP: Skadden is a leading law firm with extensive experience in business restructuring and employment law. They have worked on some of the largest and most complex restructuring cases in history.
Weil, Gotshal & Manges LLP: Weil is a global law firm with expertise in both employment law and business restructuring. They have a strong track record of success

Latham & Watkins LLP: Latham & Watkins is a global law firm with a strong reputation in business restructuring and employment law. They have worked on some of the most complex restructuring cases in recent years.
Jones Day: Jones Day is a global law firm with a strong focus on business restructuring and employment law. They have extensive experience advising clients on complex restructuring matters.

Conclusion

Restructuring employment law is a complex and challenging process, and it is essential for businesses to engage a business restructuring law firm with expertise in employment law. By doing so, businesses can ensure that they comply with employment law requirements, avoid legal disputes, and protect the rights and interests of their employees.