Redundancy and cost cutting

Following is a guide to the basics of making redundancies.  Please enter your details at the bottom of the page and we will email you our free redundancy timetable.

Keeping the business viable

When it comes to cutting costs, one of the biggest overheads in most businesses is their wage bill.  Employment law ensures that it is not straightforward to make people redundant, but redundancy does allow businesses to reduce their headcount to maintain profitability.  To ensure you stay within the law a number of steps have to be followed:

Firstly, is their an alternative to redundancy?
 - Carry out a cost review - can any other overheads be cut?
 - Look at varying contracts - can bonuses or benefits etc. be cut?
 - Consider reduced working hours, eg. overtime reduction/ Part-time working.

Employee Consultation

If redundancies DO need to be made then most companies will need to start at least 30 days of employee consultation.

This should be carried out in line with the new Consultation and Information of Employees Regulations 2004 and must include written details of:
 - The reason for redundancies.
 - The areas or job functions where redundancies need to be made.
 - The selection criteria to be used.
 - Calculation of redundancy payments.

This sets out a summary of the MINIMUM requirements to ensure you are within employment legislation, and to make sure you do not end up in an Employment Tribunal.  However most employers will naturally want to do much more for their staff with help for looking at their options, help with CVs, flexibility for attendance at job interviews etc.

If you are not planning to make redundancies then good!  But it may be an opportune moment to make sure you have a robust and thorough redundancy policy in place.

Please enter your details below and we will email you your free copy of our redundancy timetable.  If you would like us to call you back please include your telephone number.  We hate spam as much as you do - Deminos will never rent or sell your email address.

If you would like to discuss this, or any other employment matter then please call one of our HR specialists on 020 7870 1090 or 0191 460 1111.

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