Who needs redundancy advice?

Advice on redundancy is not just for employees but for employers too. Employers need to know the best way to handle redundancy, or whether redundancy is really their best option. One way to get this information is to use the services of an HR management company. As an employer, you may not always know which option is the best to solve your situation. You will probably be aware that the business environment has altered and that there is less need for certain services, but what are you to do with all of your employees? Is redundancy the only option?

It isn't, and if you get the right advice you can find out about alternatives. These might include temporary layoffs or short time working, if the downturn in business is only temporary. If the situation is likely to last longer, then employers still have the option of giving early retirement or asking employees to volunteer for redundancy. These options are all less traumatic than forced redundancy, and will prevent staff morale from dipping too low.

If there's no other option, then seek redundancy advice from a professional consultant. This is the best way to find out:

• what your obligations are to your employees in terms of notice and consultation
• how much you have to pay them
• what other benefits you have to give employees who are being made redundant.

With the right redundancy advice you will know that your obligations are different depending on how many employees are being made redundant. If you are making more than 100 employees redundant, you must consult with them over three months. Once you have agreed on who is being made redundant, then they need time off to look for other work.

Employees also need redundancy advice, and much of this can come from the same source. Employees will want to know how much pay they are entitled to; this varies according to their age and length of service. And employees should also consider finding out about redundancy insurance, though this should happen at the start of their employment. This type of insurance makes sure that part of their salary is paid to them by the insurance company so that they can meet their financial obligations.

Deminos are HR Outsourcing and employment law specialists. To find out more please call us on 0191 460 1111 or visit http://www.deminos.co.uk