A recent business survey shows UK businesses continue to cut payroll at an elevated rate despite increased activity in other parts of the economy. Augusts’ flash PMI from S&P Global recorded the 11th consecutive month of private sector job cuts and illustrates an approximate of 50,000 jobs being cut during the month; a stark reminder that both companies and workers must prepare for possible restructuring.
Despite output rising, many businesses face an uneven demand and rising staff costs; a combination that forces management to consider headcount reduction or more substantial reorganisation. The increase in aggressive cuts, leading to restructuring, faces a growing risk, that in the absence of legal planning there is then potential for unfair dismissal claims, costly settlement agreements and potential reputational damage.
Restructuring without regrets
As an employer, considering restructuring, you ought to consider the potential consequences in failing to adhere to a legally complaint redundancy scheme. Should the need arise, an employer should:
Explore alternatives to redundancy: redeployment, shorter hours, pay renegotiation and voluntary exists are, just to name a few, alternatives to redundancy.
Prepare a fair selection process: having an objective criteria, scorecards, and documentation are potential grounds to eliminate bias in the process of selection for redundancy.
Early engagement with employee reps: commencing consultations in good faith may reduce the risk of tribunal proceedings and help surface alternatives.
With over 60 years of collective employment law experience, we are able to draft and run legally compliant collective and individual consultation processes, draft settlement agreements and negotiation support, provide TUPE advice on transfers and more.
Redundancy doesn’t mean powerless
As an employee, being made risk of redundancy, it is understandably an emotional predicament, but there are several routes available including:
Requesting coherent communication: if your offered redundancy, a clear explanation as to why is mandatory and therefore by requesting written details of why and how you were selected, and the opportunity for alternative roles, this ensures your position is correctly identified.
Check your contract and length of service: this will allow you to understand your redundancy pay and notice entitlements.
Seek Legal Advice: if a redundancy seems to be a disguise for dismissal (e.g. selection appears unfair), reach out to our Employment Law department imminently as limitation periods are not extensive.
With a client focused mindset, we are able to conduct one to one redundancy and settlement advice, conduct a merits assessment in assessing prospects for an unfair dismissal claim under a conditional fee arrangement (no win no fee) and more.
If you’re an employer planning on restructure or an employee facing redundancy, ensuring legal steps are followed, early on, can minimise costs and risks. Our excellent team our able to help clients design and run fair, defensible and commercially sensible restructuring.
How we can help
With offices in Leicester and Market Harborough our employment solicitors and lawyers can discuss your employment law support needs at any of our branches. In addition, we are a national provider of expert employment law advice and welcome a free discussion with you regarding your circumstances and potential claim.
If you believe you have a situation where you require free legal advice and support, please contact us on telephone 0116 212 1000 or 01858 445 480, alternatively complete the free Contact Us form and we will get in touch as soon as possible.
