Cutting Costs? Redundancies aren’t the only option!

by | Feb 17, 2023

The financial crisis is leading employers to look at their overheads and headcount. Redundancies are one option but there are a few others on the table:

Lay off and Short Time Working

If you have a clause in your contracts of employment, you may be able to ask your staff to reduce the number of days they work (short time working) or take whole days off (lay off). You must ensure that you pay your employee the statutory guarantee pay which is set by the government. This is capped at five days in any three month period.

Contractual Changes

You will need to consult with your staff if you wish to change their terms and conditions of employment temporary or permanently. You might wish to ask your staff to accept a temporary pay decrease as an alternative to redundancies. Asking staff to decrease their hours of work may also be an option (and reduces their pay at the same time). Overtime rates and redeploying staff to other areas of the business which are busier may also be options.

You must ensure that you consult and get written agreement prior to any changes to conditions being made.

If you would like to discuss the above or the redundancy process if thats the only option for you, then please contact me now.

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