The Big Three Employment Flashpoints – and How to Avoid Costly Mistakes

Introduction

When it comes to a business’ key asset – its people – employers face a constant balancing act: driving performance, adapting to change, and protecting the wellbeing of both individuals and the business. 

Regardless of sector or size of business, experience proves there are certain employment law flashpoints that come up time and again: flashpoints that can escalate into high-stakes problems:

Handled poorly, these issues can lead to unfair dismissal claims, discrimination allegations, reputational damage and a demoralised workforce. For high growth businesses, they can even derail expansion plans and shake investor confidence. Handled well, however, they can demonstrate fairness, transparency, and strong leadership – reinforcing confidence. 

In this three-part blog series, SE-Solicitors’ Director for Employment, Carol Shaw, explores each of these flashpoints, and outlines how employers can avoid the biggest risks.

Part 1: Restructuring & Redundancy – Avoiding the Process Trap

When change hits a business (financial pressure, market shifts, mergers, acquisitions, or new technologies such as AI) leaders often turn to restructuring. Sometimes, redundancies follow. And while restructuring may be strategically essential, employers repeatedly fall into the same traps that transform necessary change into costly legal and cultural fallout.

Where Businesses Go Wrong

Even well-intentioned organisations commonly stumble over:

• Treating consultation as a formality rather than genuine engagement
• Using unclear or inconsistent selection criteria
• Neglecting to consider redeployment or suitable alternative roles
• Rushing decisions without proper documentation
• Failing to help employees explore alternatives to redundancy

Any one of these mistakes can render a dismissal unfair, even if the business case is completely sound.

The Right Way to Navigate Restructures

Successful restructuring is built on:

1. Early, careful planning
Define the business case, map out numbers, consider alternatives, and plan the communication approach before making any announcements.

2. Meaningful consultation
Listen to employees and their representatives. Consider suggestions and document the process.

3. Fair, objective selection methods
Criteria must be transparent, consistent, and defensible in a tribunal if challenged.

4. Serious consideration of redeployment
Retaining experience and institutional knowledge -even in modified roles -can be a better long-term investment than starting again, particularly when restructuring is the result of a strategic realignment or growth move.

5. Diligent closure
Where settlement agreements are used, ensure they follow legal best practice and reflect a fair process.

A well-handled restructure doesn’t only reduce legal risk. It preserves morale and demonstrates the values that attract and retain great people.

Next in Part 2: Why performance management so often goes wrong – and how to fix it before it becomes a bigger problem.

For more information on any of the issues raised in this article, please contact Carol Shaw, Director and Head of Employment Law at SE-Solicitors at cshaw@se-solicitors.co.uk. 

The contents of this article is a general guide only at the date of publication. It is not comprehensive, and it does not constitute legal advice. Specific legal advice should be sought in relation to the particular facts of a given situation.