Viable alternatives to redundancy

In today’s economic climate, for example, many businesses are facing difficult decisions about making redundancies regarding their workforce. Redundancy can be a necessary option to help a business survive, but it can also be a difficult process for both the employer and the employee. However, before making any redundancies, it’s important for employers to consider viable alternatives.

What is redundancy?

Getting a redundancy means that an employee’s position is no longer required by the employer and as a result, their employment is terminated. This may occur due to a range of reasons such as a decline in business demand, technological advances that make the employee’s role redundant, or a company restructuring. In such cases, the employer is required to follow a fair and transparent process to select employees for redundancy and to provide them with certain rights such as redundancy notice, a consultation period, and the opportunity to appeal the decision. In some cases, the employer may offer alternative employment to employees who are selected for redundancy.

What is statutory redundancy

Statutory redundancy is a type of redundancy payment that employers in the UK are required to pay to eligible employees who are being made redundant. It is calculated based on the employee’s age, length of service, and weekly pay, subject to a statutory maximum amount. The amount of statutory redundancy pay is determined by law and is updated annually. Employees with two or more years of continuous service are generally eligible for statutory redundancy pay, although there are some exceptions. Employers who do not provide the appropriate redundancy pay can be taken to an employment tribunal.

What is employment law

Employment law also plays a crucial role in ensuring the health and safety of workers. Employers are required to provide a safe working environment and take measures to prevent accidents and injuries in the workplace. This includes providing adequate training, protective equipment, and implementing safety protocols.

Failure to comply with health and safety regulations in employment can result in legal consequences and can have devastating effects on workers and their families. Employment law solicitors can advise both employees and employers on their rights and responsibilities in an employment contract with an employer offers regards to health and safety in the workplace.

Furthermore, employment law also covers employment rights issues, related to workplace discrimination and harassment. Employees are protected from discrimination on the basis of their race, gender, age, religion, disability, and other factors.

Employers are required by employment law to provide a workplace free from harassment and discrimination, and any violations of these rights can result in legal action. Employment law solicitors can assist individuals who have experienced discrimination or harassment in the workplace by providing guidance and advice on their legal options and representing them in legal proceedings if necessary.

Here are some alternative options to redundancy that you consider:

Reduced Hours

Reducing employee hours can be a viable alternative to redundancy. This can involve reducing the number of hours worked per day or week, or offering part-time or job-share opportunities.

This can help to save costs while retaining valuable employees. Employers can also consider offering flexible working arrangements, such as remote working or flexible hours and holiday pay, which can help to improve work-life balance and increase employee satisfaction.

Salary Reductions

Employers can also consider reducing salaries as a way to cut costs. This can be done by implementing a temporary or permanent pay cut or reducing bonuses or benefits.

It’s important to note that any changes to employees’ terms and conditions of employment must be agreed upon in reasonable time by both the employer and the employee. Employers must also ensure that any reductions are fair and transparent and do not discriminate against any particular group of employees.

Training and Development

Investing in employee training and development can help to improve productivity and skillsets, making the workforce more versatile and valuable.

Employers can consider offering training programs or professional development opportunities, such as workshops or courses, to help employees improve their skills and knowledge. This can also help to increase employee engagement and job satisfaction.

Alternative Job Roles

Employers can consider the redundancy process by offering alternative job roles to employees at risk of facing redundancy. This can involve redeploying employees to other areas of the business where their skills and experience can be put to good use. This can help to retain valuable employees and reduce the need for redundancy. Employers should ensure that any suitable alternative employment roles offered are suitable and compatible with the employee’s skills and abilities.

Voluntary Redundancy

Offering voluntary redundancy can be a good practice and a way for employer’s business to reduce the need to pay for compulsory redundancies. This can involve offering a financial incentive to employees who are willing to leave the company voluntarily. It’s important for employers to ensure that any voluntary redundancy schemes are fair and non-discriminatory and do not put undue pressure on employees to leave.

Conclusion

In conclusion, redundancy can be a difficult process for both employers and employees. However, before making any redundancies, it’s important for employers to consider viable alternatives. Reducing hours, implementing salary reductions, investing in training and development of new system, offering alternative job roles, and voluntary redundancy can all be viable alternatives to redundancy. Employers should ensure that any redundancy pay or changes to employees’ terms and conditions of employment are agreed upon by both parties through consultation process and are fair and transparent.

How can DPH Law Help?

A Compromise Agreement is needed in various situations, including when a job disappears, an employee is made redundant, dismissed, or when employment is ended by mutual agreement. It can also be used to settle an Employment Tribunal claim. Dickinson Parker Hill’s employment solicitors regularly advise employees on Compromise Agreements, and their costs are usually paid by the employer once the agreement is concluded.

By getting in touch with the team at Dickinson Parker Hill, you can gain impartial advice and a better understanding of the employment law services that are available. Give us a call now on 01695 574201 (We are Open 9am – 5pm), or drop us an email