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/