Redundancies - what employer's need to know

Peninsula Team

November 05 2010

The Coalition Government announced its long awaited spending review on 20th October. The Chancellor, George Osborne must have heaved a huge sigh of relief when it was announced less than a week later that the economy grew by 0.8%, twice the figure expected, between July and September of this year. Whilst Mr Osborne anticipates a ‘steady’ recovery and a confidence boost, Labour expressed their concerns that the rapid spending cuts could damage the economic recovery, fearing a ‘double-dip’ recession. It is estimated that over 490,000 job cuts are expected across the public sector by 2015. The private sector employs approximately 4 times as many people as the public sector and the Chancellor will be looking to the private sector to step up its recruitment and create additional employment opportunities. However with no guarantees that the economic recovery will be sustained, added with the pressures of cost rises, businesses and organisations across the both the public and private sectors are under increasing pressures to cut costs. Companies have been tightening their belts and looking for ways to reduce costs for some time now, and when companies are faced with the prospect of having to reduce their payroll costs the pressure is usually on to act fast. Peninsula can offer comprehensive, bespoke advice to clients when they are faced with a potential redundancy situation, organisational restructure, temporary lay-off or other cost cutting exercises. To be able to understand our client’s specific business situation we will start by looking at the business reasons behind the potential redundancy and we will provide clients with step by step guidance from an allocated consultant who specialises in redundancy advice. Remember, employers have a legal obligation to follow a redundancy consultation process ahead of a redundancy dismissal; this is irrespective of how many employees are to be made redundant and the size of the company. Failing to do so could result in an unfair dismissal claim and financial penalties for the company. Tribunals will not act leniently just because we are in a recession. If there are time pressures to complete your redundancy process then please notify the Advice Line at the earliest opportunity, this will assist us in providing the most pragmatic advice. Even if clients are not faced with the immediate threat of redundancy, they can contact one of our redundancy consultants for specific guidance should this become necessary in the future. Remember a redundancy is a dismissal and it is vital that clients seek advice from Peninsula before taking any action in order to prevent any tribunal claims. For more information on how to deal with redundancies in your business, whether you are a client or non client, contact our Advice Line on 0844 892 2772.

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