Corporate restructuring

Corporate restructuring

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Corporate restructuring is a necessary harm in many cases which could help us to avoid the disappearance of our company, and it is impossible not to implicate Human Resources. In Evolutiza Lawyers & Tax Advisors, experts at labour area and companies advising, thus, in corporate restructuring, we want to give a brief explanation that could solve some of your questions.

The most common method is the “labour force adjustment plan”. It consist on reducing work times to employees, or reducing the company contract in a collective way, in order to adapt its activity to new situations and keep its viability. In these procedures, it is really important to act carefully and in the least alarming way as possible, because it could affect our credibility seriously. It is especially relevant, since it may lessen the corporate image, losing market share and make the company situation even worse. If we want to prevent this, we should to make a strategic preparation which allows us to foresee the negative impact and reduce costs.

There isn’t a standard process to follow when we have to modify labour relationships as a consequence of a corporate restructuring, nevertheless, there are some patterns which make adjusting to legality possible and, above all, reducing damage for both the company and its workers.

One of the most important measures is delimiting those people who will be affected by the process, and which criterions will be used to choose them, criterions which allow us to keep the best professionals without any discrimination, and respecting Corporate Social Responsibility in every moment.

In summary, to start a staff restructuring process, it is really important to know professional who are able to develop a suitable viability plan, in addition to projects plans or technical reports, which will have a double value: they will allow us to carry out the restructuring process in the least detrimental way and they will be useful as probationary documents about excess staff for later eventualities.

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