The aftermath of the corona crisis is forcing many organizations to restructure. Almost every sector faces major business and socio-economic challenges. New rules of work and manners. Different product-market combinations. Especially in these turbulent times, overview and speed of action are essential.
As a manager, you know that a reorganization process is challenging in several ways. Quick and precise action is required, but always making the right decisions under these circumstances is far from easy. Yet you can make it much easier for yourself. As an experienced reorganization partner, we take the whole or part of the process off your hands and know exactly what to do when. Not only does this offer you peace of mind and cost savings, it also saves you a lot of time. So your organization will be ready for the future again in no time. That is what we call ‘effective reorganization’.
Why Lexence is your preferred reorganization partner
As an experienced reorganization party, we map out your reorganization within 48 hours and can start immediately. We offer insight and a concrete step-by-step plan in no time. This saves you a lot of time and money and offers you peace of mind and an overview. Together, we safeguard the future of your organization and turn crisis into strategic opportunities.
Lexence has been working at the top of the (inter)national business world for more than 30 years. The in-depth legal and financial experience of our team of more than 100 attorneys and notaries puts us in a unique position as a firm when it comes to reorganization.
Case
A large international organization active in the car tire and car maintenance market
The customer
A large international organization active in the car tire and car maintenance market.
The trigger
Based on a strategic orientation, a new business plan was drawn up, aimed at growth, greater focus and the improvement of the financial position in general. As a result, 115 jobs were eliminated.
The Role of Lexence
Lexence was asked to take on and supervise this process. From writing out the business case, consulting with unions on a social plan, to the termination of employment contracts. By communicating clearly from the outset and offering a severance incentive scheme, all redundant employees agreed to a settlement agreement. Thus, there was no need for a lengthy UWV procedure.
CAN I REORGANIZE ONLY IF I AM MAKING A LOSS?
No, even if a company shows good results, there may be reasons to reorganize. For example, because work reductions are expected or because even better results can be achieved through organizational changes or technological developments. Besides work reduction, UWV describes four other causes of business economic reasons, namely poor financial situation, organizational changes, technological changes and the termination of business activities.
AM I REQUIRED TO ENTER INTO A SOCIAL PLAN?
No, you are not legally required to enter into a social plan. However, many collective bargaining agreements do state that a social plan must be consulted with unions. If a CAO applies, it is advisable to check. For example, some collective bargaining agreements provide for a waiting allowance in the event of economic dismissal.
SHOULD I REPORT THE REORGANIZATION TO UWV?
Under the Collective Redundancy Notification Act, you must notify if you intend to lay off 20 or more employees for economic reasons, within one area of operation and within a period of three months.
CAN I ALSO TERMINATE THE EMPLOYMENT CONTRACT WITH A SICK EMPLOYEE?
No, in principle this is not possible. The ban on termination due to illness only does not apply in the case of a reorganization if there is a complete company closure. If there is no complete company closure, the employment contract can only be terminated for business economic reasons if (1) the notification of illness occurs after the request for permission is received by UWV, or (2) when the employee’s recovery is expected within four weeks after the UWV’s decision.
SHOULD I INVOLVE THE UNIONS IN A REORGANIZATION?
It is a good idea to check whether a collective bargaining agreement applies within your organization, and if so, whether it contains obligations if a reorganization is planned. In addition, in some cases a notification must be made to relevant unions under the Collective Redundancy (Notification) Act.
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