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Alternatives to redundancy Dec 2008

Have you considered the alternative options to making redundancies?

Given the economic downturn, many companies have been forced to consider their staffing requirements and where necessary, made redundancies.

The redundancy process can be a time of great insecurity for many employees; frequently resulting in low levels of motivation and morale, which may have a impact on productivity and profitability.

Joanne Walker, Associate solicitor at Higgs & Sons, offers advice on alternative options to companies currently considering redundancy:

  •  Relocating or seconding employees

A company may be able to relocate or second employees from a quiet department into one that is busy and struggling to meet deadlines or demands. This will increase efficiency and effectiveness.

  •  Retraining employees

A company may also consider whether any employees can be retrained, and the costs associated with this. It may therefore be worthwhile meeting with employees to establish if they possess any skills or qualifications of which the company is unaware and can be used elsewhere within the business.  

  •  Temporary variation in hours and rates of pay

Employees may be willing to accept a temporary variation in hours and pay rather than be at risk of redundancy, however any such variation should be agreed by the employee and documented accordingly.

  • Notice of intended retirement

A company should also consider whether any employees are approaching retirement age within the next six to twelve months and if so, issue notice of the intended retirement date. 

  •  Voluntary redundancy

If the company is in a position whereby it must consider making compulsory redundancies then it can ask for volunteers.  The danger of doing so is that the company may lose valuable skills, although an application for voluntary redundancy does not have to be accepted.

To discuss these options further or to seek advice on additional alternatives as to how a redundancy programme may be reduced or avoided please contact our Employment Department on 01384 342 100.

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