case study restructuring done wrong

Jane's staff suggested other ways to reduce costs, but she felt that they would not make enough difference and made senior stylist Alan redundant.

The savings on wages equated to 6%, not 10% as Jane’s proposal stated. When she confirmed the new structure, she didn’t state why she was rejecting the alternative measures suggested by her staff.

Alan took a personal grievance case to the Employment Court. The court upheld his claim as Jane had not genuinely considered her employees’ feedback and there was not enough justification to have made Alan redundant.