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Redundancy – what are the alternatives?
In the second part of our redundancy series we are looking at
alternatives to redundancy.
Often there is pressure to make redundancies, but companies do not
want to lose the valuable skills and experience of their staff.
This has recently been seen in the news with Honda halting UK car
production at its Swindon plant for two months during Feb and Mar
2009. A 17% drop in production is the net result, but most
importantly all staff are retained on their basic package ready for
work to resume.
Lay-offs such as those at Honda or ‘short time working’ (where the
working week is shortened) can provide a temporary alternative to
workforce reduction. These can only be introduced if there is a
contractual right to do so, that is either stated in the contract
of employment or through a collective agreement.
Check your employment contract.
If you have no contractual right to do so, you may go into a period
of consultation with your staff to get their agreement to the
changes, which would involve varying contracts and you would have
to confirm the changes in writing with each individual.
Even if you have right to bring into effect short-time working or
lay offs, you need to make sure that the situation is handled
carefully and take into account the effect that this may have on
your workforce, this is especially the case if it is not a regular
occurrence.
You need to be watchful over what period of time and the number of
occasions that you impose short time working or lay off on an
individual as they may then have the legal right to claim
redundancy. This is a very complex area of employment law with a
number of legal provisions that need to be followed.
Call us now.
Deminos can help . . . . ring us today on 0191 460 1111 – we can be
your virtual HR Department at the fraction of the price of
employing an additional member of staff, with the added security of
Employment Tribunal Insurance.
