Change management in the Channel Islands: What do employers need to consider

At our recent Channel Islands employment law seminar on change management, HR professionals and business leaders came together to explore the employment issues that arise when organisations restructure, reorganise or integrate following an acquisition. 

The session focused on restructuring and contractual change, business transfers and redundancy, with a strong emphasis on practical steps that support both legal compliance and effective business outcomes.  

To bring these issues to life, attendees took part in live polling throughout the session. The results highlight the challenges employers are navigating in practice and where views differ across industries and scenarios.

Responses showed that restructuring is rarely driven by a single factor. 

Common themes included cost saving, efficiency, integration following acquisitions and changes to operating models. Some respondents also referenced technology and AI as drivers, alongside broader market pressures.  

These drivers are important, as any change programme ultimately needs to be supported by a clear and well documented business rationale if it is later scrutinised. 

Harmonisation after acquisitions: How early is too early?

Harmonising terms and conditions continue to be one of the most challenging aspects of post-acquisition integration. 

Polling showed a strong preference for early harmonisation. In Jersey, 88% of respondents selected “at completion”, while views in Guernsey were more mixed, with 55% at completion and 30% favouring a later approach.  

In practice, this reinforces the importance of planning early and treating harmonisation as a structured contractual exercise, supported by consultation and clear communication with employees.  

Business transfers 

A key point discussed throughout the seminar was that TUPE does not apply in the Channel Islands, which means that employees will not automatically transfer to the buyer upon the sale of a business. 

Instead, employment transfers are generally achieved by obtaining employee consent, which introduces both flexibility and risk into the process. 

Challenges can arise where employees do not consent to transfer, including the need for potential redundancies, and it is important that employers plan carefully for these situations to minimise the legal and practical risks. 

Redundancy: Where risk often arises 

The session also highlighted the importance of determining whether any proposed dismissals meet the statutory test for redundancy, or whether the dismissals need to be justified by reference to another potentially fair reason. It also highlighted the importance of following a fair redundancy process, including careful consideration of pooling, selection criteria and consultation.   

Polling showed that respondents were rightly cautious about using certain selection criteria in a redundancy exercise. Subjective criteria such as “flexibility and attitude” were widely viewed as problematic, alongside part-time versus full-time status and sickness absence, given the discrimination risks that may arise.  

The session also touched on some of the trickier areas relating to consultation, such as how to consult with employees who are on maternity, parental or sick leave, and the circumstances in which collective consultation obligations will apply in Jersey. 

One of the main takeaways was that early, meaningful consultation, supported by clear documentation, remains one of the most effective ways to reduce risk and support better outcomes.