What is a reorganization?
"Reorganization" is not a legal term but a familiar concept: it refers to a significant transformation within an organization, often involving adjustments to:
structure;
processes;
workforce and/or
employment terms.
What are the goals of a reorganization?
The goal of a reorganization can vary, such as cost reduction, efficiency improvement, adapting to market changes, mergers, and acquisitions.
Which legal frameworks apply?
The starting point is entrepreneurial freedom, which is framed by laws and regulations. This freedom must be justified. Strong knowledge of these legal frameworks and practices is crucial. For instance:
the justification: what, why, based on what?
the role of the works council: what, how, and when?
the role of trade unions: what, how, and when?
determining workforce reductions: who, how, when?
setting the reference date
interchangeable roles: which roles are comparable?
the organization: which locations are included?
suitable roles: how far does the reassignment obligation go?
preventing sick leave
transparent and strategic communication with stakeholders
can employment terms be changed?
First tip: your freedom as an entrepreneur
As an entrepreneur, you are fundamentally free to structure your organization. A reorganization is also possible even when operating at a profit.
In the coming weeks, I will share blogs about smart reorganization. Do you have a specific question or challenge? Let me know!
