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Letting Go
Listed under: Retail Clinic
Published: Tuesday, January 27, 2009
Times might be tough – but easing your staffing costs is a delicate process. Legal expert Brigit Foster give you the lowdown on getting it right
No one enjoys cutting employees hours or letting staff go, but when the activities of any business slow down it could be time to cut your biggest overhead and reduce the manpower. So how can you make sure you manage the process in the fairest – and most legal – way? “There are basic steps employers must follow when making redundancies, otherwise they could be facing an unfair dismissal claim,” explains Brigit Foster of law firm Darbys Solicitors LLP. “These apply to all employers laying off under 20 employees within a 90-day period and are:
– considering ways to avoid redundancies (e.g. freezing vacancies, retraining and restricting overtime)
– identifying a pool or pools of affected roles
– setting fair selection criteria
– scoring staff fairly against the criteria
– informing those at risk and consulting with them
– holding a dismissal (redundancy) meeting
– confirming the decision and the right of appeal
“Employers must not choose employees for a discriminatory reason like disability, religion, pregnancy, maternity or parental and dependent care leave,” she continues. “Additional acts prohibit other forms of discrimination so shop owners should always seek legal advice. Claims relating to such dismissals do not require an employee to have any particular length of service, so it is still vital to follow the redundancy steps – even if the person being made redundant is on maternity or long-term sick leave.
“Also, employers should keep written records of each step in case the employee challenges the decision and/or claims that their selection was unfair or discriminatory. Another recommendation is to always consider any suitable alternative employment to offer.
“Finally, statutory redundancy pay is calculated on the basis of length of service, age and weekly pay – weekly pay is capped at £350 and length of service is capped at 20 years. Some employers provide enhanced redundancy pay, usually set out in the contract or staff handbook. Otherwise, an employee needs two years’ service with their employer to be eligible for a statutory redundancy pay.”
For advice on redundancy or any other employment law issue, contact Brigit Foster on 01865 811757 or at .(JavaScript must be enabled to view this email address).
– considering ways to avoid redundancies (e.g. freezing vacancies, retraining and restricting overtime)
– identifying a pool or pools of affected roles
– setting fair selection criteria
– scoring staff fairly against the criteria
– informing those at risk and consulting with them
– holding a dismissal (redundancy) meeting
– confirming the decision and the right of appeal
“Employers must not choose employees for a discriminatory reason like disability, religion, pregnancy, maternity or parental and dependent care leave,” she continues. “Additional acts prohibit other forms of discrimination so shop owners should always seek legal advice. Claims relating to such dismissals do not require an employee to have any particular length of service, so it is still vital to follow the redundancy steps – even if the person being made redundant is on maternity or long-term sick leave.
“Also, employers should keep written records of each step in case the employee challenges the decision and/or claims that their selection was unfair or discriminatory. Another recommendation is to always consider any suitable alternative employment to offer.
“Finally, statutory redundancy pay is calculated on the basis of length of service, age and weekly pay – weekly pay is capped at £350 and length of service is capped at 20 years. Some employers provide enhanced redundancy pay, usually set out in the contract or staff handbook. Otherwise, an employee needs two years’ service with their employer to be eligible for a statutory redundancy pay.”
For advice on redundancy or any other employment law issue, contact Brigit Foster on 01865 811757 or at .(JavaScript must be enabled to view this email address).
