Last modified 11/03/2025

💼 What is a Restructuring-Based Dismissal? Complete Guide with Practical Examples

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Are you looking for useful information about restructuring dismissal letter templates?. Restructuring-based dismissal is one of the most complex situations in human resources management that modern companies face.


This measure, which is part of what is known as collective dismissal or dismissal for organizational reasons, occurs when a company needs to modify its organizational structure for economic, technical, productive, or market-related reasons.

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Unlike disciplinary dismissal, this does not respond to an employee’s breach, but to the organization’s needs. Understanding this process is crucial both for employers who must implement it and for employees who may face it.

This guide provides updated information on the legal procedure, the corresponding compensation, and the best approaches to handle this situation with professionalism and empathy, always within the framework of current labor legislation.

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🏛️ What is a Restructuring-Based Dismissal? Definition and Legal Framework

Restructuring-based dismissal is a legal figure recognized in most labor legislations that allows companies to terminate employment contracts as a consequence of significant changes in the organizational structure.

These changes can include mergers, acquisitions, position redefinition, incorporation of new technologies that modify productive processes, or needs for adaptation to market conditions.

What distinguishes this type of dismissal is that the cause does not lie with the worker as a person or their performance, but with business decisions that make it necessary to suppress or transform jobs. Therefore, it is considered an objective termination of the contract, which entails specific compensatory rights for the employee.

The legal framework establishes strict procedural requirements that companies must follow for the dismissal to be considered valid, including written notification with the specific cause and payment of the legally established compensation.

Main characteristics of restructuring-based dismissal:

  • 🎯 Based on organizational causes: Responds to company needs, not the worker’s
  • ⚖️ Legally protected: Must comply with the requirements established by law
  • 💰 With right to compensation: Generates economic obligations for the employer
  • 📋 Subject to procedure: Requires specific formalities in its communication

🗣️ What to Say When Dismissing an Employee for Restructuring? Communication Guide

Communicating a restructuring-based dismissal is one of the most delicate moments in human talent management. Addressing this conversation with transparency, respect, and empathy is fundamental to preserving the employee’s dignity and maintaining the organization’s reputation.

The dismissal conversation should be carefully planned, choosing a private place and an appropriate time, preferably at the beginning of the week to allow the employee to manage procedures.

It is crucial that the person communicating the decision has authority within the company and is properly prepared to handle possible emotional reactions.


During the exit interview, it is important to be clear and direct about the decision, explaining the restructuring context without going into unnecessary details that may generate confusion or false expectations. The communication should focus on the facts, avoiding ambiguous language or euphemisms that could be misinterpreted.

Key elements for the conversation:

  • 📅 Preparation: Have all documentation ready and know the settlement details
  • 🕒 Appropriate timing: Choose a time that allows privacy and sufficient time
  • 🔊 Clarity: Explain the decision and its organizational causes directly
  • 📝 Documentation: Deliver the dismissal letter and relevant documentation in writing
  • 🤝 Empathy: Show understanding of the employee’s situation
  • 🔮 Guidance: Offer transition support (outplacement) if possible

💰 What is the Compensation for Restructuring-Based Dismissal?

Compensation for restructuring-based dismissal varies according to the labor legislation of each country, but it is generally calculated based on the employee’s length of service and salary.

In many legal systems, this compensation is usually higher than that for unfair dismissal but lower than for null dismissal. The typical calculation considers a determined number of days’ salary per year worked, with possible maximum limits established by law.

In addition to the main compensation, the worker has the right to receive amounts corresponding to the salary for days worked in the month of dismissal, the proportional part of extra payments, unused vacations, and other pending salary concepts.

It is essential that companies perform these calculations accurately and transparently, as any error can lead to subsequent claims. Employees, for their part, should carefully verify the calculation of the settlement and seek advice if they have doubts about their rights.

Typical components of the settlement:

  • 💵 Main compensation: Calculation based on days per year worked
  • 📊 Pending salaries: Worked days not paid
  • 🏖️ Unused vacations: Proportional payment
  • 🎁 Extra payments: Proportional part
  • 📈 Other concepts: Pending bonuses, commissions, or supplements

📄 What to Include in a Restructuring Dismissal Letter?

The restructuring dismissal letter is the formal document that communicates in writing the decision to terminate the employment contract. This document must comply with all legal requirements to be valid, including the complete identification of both parties, the effective date of the dismissal, the specific cause motivating it, and the detail of the compensation offered.

The dismissal letter must clearly specify that it is a dismissal for objective causes derived from an organizational restructuring, mentioning the economic, technical, productive, or organizational reasons that justify the measure. It is essential that the wording is clear and precise, avoiding ambiguities that could be interpreted as an unfair dismissal.

In addition to the legal aspects, the tone of the document should be professional and respectful, acknowledging the employee’s contribution during their time in the company. The letter must be delivered personally to the worker, with proof of receipt, or by certified mail if direct delivery is not possible.

Essential content of the letter:

  • 📌 Complete identification: Company and worker
  • 🗓️ Effective date: When the employment relationship ends
  • 🏢 Specific cause: Reasons for the restructuring
  • 💸 Compensation detail: Calculation of the compensation
  • 📋 Settlement breakdown: All concepts to be paid
  • 📜 Legal basis: Reference to applicable regulations
  • ✍️ Signature and receipt: Proof of delivery

📝 05 Examples of Corporate Restructuring Dismissal Letter/Email Templates

1. For a Managerial or Executive Position 🧑💼

Subject: Communication of contract termination due to organizational restructuring

Dear [Manager’s Name],

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By means of this letter, we communicate the decision to terminate your employment contract as [Position] at [Company Name], effective from [date], as a consequence of the organizational restructuring process that the company is implementing to adapt to new market conditions.

This measure responds to strategic needs of the organization that have led to the redefinition of certain managerial positions. We deeply appreciate your valuable contribution during your [number] years in the company and your leadership in projects such as [mention a relevant project].

According to current legislation, you are entitled to compensation of [amount] euros, equivalent to [number] days’ salary per year of service, with a total of [years] years. We attach the detailed breakdown of your settlement.

We appreciate your professionalism and wish you the greatest success in your future projects.

Sincerely,
[Name of Legal Representative]
[Position]


2. For Middle Management 👨💼

Subject: Communication regarding termination of employment contract

Dear [Name],

Through this writing, we inform you of the termination of your contract as [Position] in the [Department] department, effective from [date], as a result of the restructuring process we are implementing to optimize our organizational structure.

We regret having to take this measure, which responds exclusively to organizational needs of the company. We want to acknowledge your dedication and contribution during your [number] years in the company, especially in [mention a specific contribution].

In accordance with labor regulations, you are entitled to compensation of [amount] euros. In the coming days, our Human Resources department will contact you to coordinate the delivery of documentation and the corresponding payment.

We appreciate your understanding and wish you the best in your professional career.

Cordially,
[Manager’s Name]
[Human Resources Department]

3. For a Specialized Professional 👩🔬

Subject: Important communication regarding your employment situation

Hello [Name],

We are writing to inform you that, as part of the restructuring process of the [Area] area, we have made the difficult decision to terminate your contract as [Position], effective from [date].

This measure responds to organizational changes necessary for the evolution of the company and in no way reflects on your professional performance, which has always been satisfactory. We appreciate your work on projects such as [mention project] and your commitment during your [number] years with us.

According to the law, you will receive compensation of [amount] euros. We attach the detailed calculation of your settlement. We will be available to resolve any questions through HR.

We wish you much success in your professional future.

Regards,
[Human Resources Department]

4. For an Administration or Support Employee 👨💻

Subject: Communication regarding contract termination


Dear [Name],

By this letter, we inform you that your contract as [Position] at [Company Name] will end on [date], as a consequence of an organizational restructuring process that affects your department.

This decision responds exclusively to the company’s reorganization needs. We want to thank you for your professionalism and dedication during your [number] years of service.

In accordance with labor legislation, you are entitled to compensation of [amount] euros. You will receive a communication from our payroll department with the details of your settlement and instructions for its collection.

We appreciate your understanding and wish you the best in your future employment.

Sincerely,
[Human Resources Department]

5. For a Production or Operations Employee 🏭

Subject: Communication regarding your employment situation

Dear [Name],

We communicate the termination of your contract as [Position] at [Company Name], effective from [date], as a result of the productive restructuring process we are implementing.

This measure responds to needs for adapting our operations and is in no case related to your performance. We appreciate your work and commitment during your [number] years in the company.

According to labor regulations, you are entitled to compensation of [amount] euros. Our HR department will contact you to manage the delivery of documentation and the payment of your settlement.

We wish you success in your future professional projects.

Regards,
[Company Representative]

🔍 10 Curious Facts About Restructuring Dismissals

  1. 📈 Restructuring increases by 35% during economic crises according to labor market studies.
  2. 🔄 Only 15% of companies offer relocation programs to employees dismissed due to restructuring.
  3. 🏢 70% of restructuring dismissals are concentrated in administrative and support areas.
  4. 💬 Companies that communicate dismissals poorly see their productivity reduced by up to 20% in the remaining teams.
  5. 💸 The cost of a poorly managed dismissal can be up to 3 times greater considering lawsuits and reputational damage.
  6. ⚖️ Only 25% of dismissed employees due to restructuring claim judicially when the process is transparent.
  7. 📅 Restructuring announced on Tuesdays has a 40% less media impact than those on Mondays.
  8. 🎯 60% of large companies prefer to carry out restructuring dismissals in the first quarter of the year.
  9. 🏛️ Collective dismissals due to restructuring require in many countries communication to the labor authority 30 days in advance.
  10. 😥 45% of managers report high stress when having to communicate restructuring dismissals.

✅ Conclusion: Ethical and Legal Management of Restructuring Dismissal

Restructuring-based dismissal is a legal tool that companies can use when facing legitimate organizational needs, but it must be handled with maximum respect towards the affected employees.

A well-managed process, which scrupulously complies with legal requirements and communicates the decision with transparency and empathy, can mitigate the negative impact both for the workers and for the organization.


The corresponding compensation is not only a legal obligation, but also a recognition of the employee’s contribution during their time in the company. Organizations facing these processes must remember that how they treat the people leaving the company significantly influences the perception of those who stay and their reputation in the labor market.

A well-managed restructuring dismissal, although always complex, can preserve positive relationships and maintain the image of a socially responsible company.

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#️⃣ Recommended Hashtags for social media

#RestructuringDismissal #LaborLaw #DismissalLetter #RestructuringDismissalEmail #CollectiveDismissal #LaborCompensation #LaborRelations #LaborConsultancyForRestructuring #TalentManagementForRestructuring

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