Careful restructuring starts with a robust business case: substantiating the need
Reorganisations are becoming more frequent and arise for a variety of reasons. These may include margin pressure, digitalisation and AI, or strategic decisions such as growth, profit optimisation or a planned sale. Whatever the driver, a successful reorganisation always starts with a clear and well-substantiated business case.
In this blog series, we outline all the steps involved in preparing a reorganisation. You will find practical tips and real-world examples, as well as common pitfalls to avoid.
Part one: how to build a strong business justification.
In her blog for evofenedex, Anneke Nijk, Employment Lawyer at Lexence, emphasises that a reorganisation touches on multiple aspects of employment law and can have significant consequences for employees. For this reason, thorough preparation is essential. By conducting proper due diligence in advance, organisations can prevent issues at a later stage and increase the likelihood of a smooth process.
The first and most important step is to substantiate the necessity. Employers must clearly explain why certain roles are being made redundant on a structural basis and which economic or organisational factors underpin these decisions. This justification is not only crucial for internal decision-making, but also for external scrutiny—for example, by the relevant authorities.
In short, a reorganisation is not a quick intervention, but a carefully managed process. A strong, well-documented business case forms the foundation for a legally robust and practically executable reorganisation.
Read the full blog here.
