Shedding staff not always only option for firms

EMPLOYERS do not like the idea of making employees redundant, but may feel there is no alternative, particularly if there is not enough work to keep them busy.

I would like to remind employers they need to follow set statutory procedures from a very early stage when they are considering redundancies, particularly where there are 20 or more jobs at risk over any three-month period.

Redundancies of that scale are subject to what is known as the "collective consultation" rules.

Those rules require employers to consult with representatives of affected employees about a whole range of issues relating to the proposed redundancies, including ways in which the redundancies might be avoided, or the numbers reduced.

There are a number of ways of reducing staff costs without imposing compulsory redundancies.

I believe these options can be considered with affected staff before the employer starts any formal redundancy process, or during a collective consultation process itself.

Many employers are already saving costs by imposing a recruitment freeze, and not replacing employees as they retire or leave for other reasons.

There are a number of other options employers should consider before implementing a compulsory redundancy programme.

One idea, which is proving popular, is asking employees to agree to a temporary shorter working week, with a corresponding cut in pay.

This does need to be done by agreement with the affected employees or their representatives, as if the employer simply imposes a shorter working week, employees could resign and claim that they had been constructively dismissed, and could also claim a redundancy payment.

Another option would be to see whether it would be possible to re-deploy staff temporarily, or even permanently, from a team that was not busy, into a team where extra support was needed.

Employers need to know that the affected members of staff will have the skills to do the new job, or the capacity to be trained, and again it would be better for employers to take this step with the agreement of the relevant employees.

Employers are also keen to consider the possibility of asking for volunteers for redundancy, although they should make sure they would be prepared to risk losing good people who put themselves forward.

Many employers are concerned about the formalities and rules that apply to the collective consultation rules, and are worried about getting it wrong.

From my experience, employers value the guidance through the process that professional advisers can provide.

They are often pleasantly surprised by the constructive way in which representatives approach the consultation process, particularly where the employer shows it is willing to propose or consider constructive alternatives to compulsory redundancies.