Unfortunately, in all businesses’ history redundancy lingers in the background, reminding employers that sometimes they are required to reduce their workforce - even if they don’t want to! As the owner or manager of a business, you may be worried that a lack of customer demand could result in making some of your employees redundant. However, Pytronot Solutions have a way of handling these situations as well as alternatives.
Is there enough work to keep staff busy? Is there sufficient income to pay wages and keep the business afloat? These are just a few questions that go through the minds of business owners and managers in times of trouble.
Your mind may later turn to redundancies to reduce the number of staff to cut costs. However, this can be a daunting prospect for you, when you are unaware how this will affect you and all of your employees.
If you’re planning on making redundancies in the near future, you must make sure they are for the following reasons:
You have ceased (or intend to cease) carrying on the business for the purposes of which you employ someone.
You have ceased (or intend to cease) to carry on the business in the location you employ someone.
You don’t require your employees to carry out work of a particular kind any more.
You don’t require your employees to carry out work of a particular kind in a specific location any more.
It may seem very legalistic, but you must ensure you meet these legal requirements if your business is changing or closing. There are plenty of things to consider when making people redundant. For example, did you know redundancy can be voluntary or compulsory? Voluntary redundancy is where an employer asks a member of staff to terminate their contract, in return for a financial incentive. While compulsory redundancy is dismissing your employees with a notice.
Before you start the redundancy process, we recommend looking at the alternative options to reduce redundancies or prevent them.
Stop recruiting and retrain staff - As well as improving the morale around your employees, you can save money by simply retraining your staff to do the jobs you require.
Offer flexible working - WIth a better work-life balance, your employees will be more productive so why not offer them part-time work and job shares? This not only will save you money but can help avoid redundancies.
Place employees on short-time working - Agree with your employee to work a certain number of days or hours a week.
If you’re unsure about handling your staff’s redundancy, why not get in touch with the touch at Pytronot Solutions! We can help you understand the process and support you during the redundancy phase so you make sure you are doing the right thing. For more information, call 0203 763 8666.