Avoiding compulsory redundancy
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What can companies do to avoid having to make compulsory redundancies?
A number of things can be done which, if started soon enough, can help prevent the need for a compulsory redundancy situation arising.
Help prevent compulsory redundancy by
- Stop recruitment
- Ban overtime
- Lay off agency workers
- Freeze pay increases
- Short time working *
- Appeal for volunteers
- Agree salary cuts *
- Reduce costs
* May be contrary to, or in direct breach of, an employee’s contract of employment – seek advice where necessary
In the event that disputes arise, tribunals will look favourably upon companies that have taken the above actions prior to making redundancies, having taken all reasonable steps to prevent it.
Reducing costs can have a significant effect on a Company’s profitability and ability to ride out a temporary downturn in business. A modest £20k per annum saving can pay someone’s salary and significantly improve cash flow. For more on the effects of profit and turnover – see my previous blog by clicking the link below.
http://www.expense-reduction.co.uk/2010/01/can-profit-replace-turnover/
- Mark has been helping businesses reduce costs and improve profit for 9 years. Mark works both as a Client manager/ Analyst for his own Clients and also as a general analyst for colleagues throughout the group. Mark acted as Business Doctor for the North West's Chamber of Commerce magazine "53 Degrees" answering the question "How can I manage my costs effectively?" in March 2009 and presented at two Law Society seminars in the same year on the subject of managing costs for legal firms.
- We improve profit by reducing costs of Energy, Telecoms, Print, Stationery, Packaging, Freight, Copiers, Waste disposal, Engineering supplies, etc
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