A reorganization is a major process with often important consequences for the personnel. Jobs may change or become redundant, departments may be dissolved or merged, and often layoffs are the result of this.
During reorganizations, it is important that an employer maintains an overview. This starts with drawing up a business case or reorganization plan. It must be clear what will change, why this is necessary and what the employer wishes to achieve in concrete terms. In addition, the consequences for personnel will have to be mapped out. In doing so, the employer is bound by strict rules, such as the reflection principle and investigating reassignment options.
A social plan often applies in the event of a reorganization. This sets out the provisions for which the employees affected by the reorganization may be eligible. The employer will also usually have to consult with the works council (OR) and sometimes – in the event of collective redundancies – also with the labor unions. When implementing the reorganization, timing and communication are very important.