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    <span class=August, 2017" />

    Redundancy is a stressful and emotional time for not only the employee but the business too. Trying to run the business simultaneously as well as going through redundancies can be particularly challenging. This subject is a vast area, but the below points are some key areas which can sometimes be forgotten about but if not considered can be very costly for a business.

    Redundancy or Performance?
    It is the role you are making redundant not the person. It can be common for managers to think a role is not required anymore when the person carrying out the role is not performing. Is it a performance issue? If so manage it that way! Don’t confuse the two.

    Contracts of employment
    Check contracts of employment. What termination agreements are in the employee’s documentation? Be mindful of those employees that may have been transferred from another business and may have different terms to others. Always check and budget for this!

    Alternative options
    Check alternative employment options. Can their skills be used elsewhere in the business? If someone has been with the company for 25 years their experience will be invaluable. Are there any mentoring or training opportunities they can slot in to? Consider reduced hours, or more flexible working as alternatives, have the conversation! Redundancy is a costly option.

    Legal advice
    Make sure you contact your employment lawyers before starting a redundancy process. Many businesses go straight in and when issues arise call the lawyers. However, this is usually more costly for the business. They can help identify any legal pitfalls you need to be made aware of and advise on the company’s legal obligations. Ensure that the person carrying out the redundancy procedure knows what they are doing and they have prepared.

    Management training
    Managers must be trained. Lack of efficient skills in managers managing the redundancy process can be very costly for a business and may result in a company being taken to tribunal! Knowing what you can and can’t say in a redundancy process is key and knowledge of the procedure is important in managing employee expectations. Enhancing communication skills and managing conflict will also help for a more smooth and less stressful process. HR should be there to support and guide managers throughout.

    Employees left behind

    Think about those who are left behind. Employees who were not chosen for redundancy are often forgotten about as the focus is understandably with those who have been made redundant. However, their role is integral for the “business as usual” stance and continuity of service to your clients and customers. Those employees may feel uncertainty, which may manifest in low morale, increased absenteeism and decreased engagement with the business ultimately this may lead to them looking for a job elsewhere. You don’t want to lose these people and their skills! Managing change will be key here and the role of the line manager!

    If you would like to tell us about your experience of redundancy we would love to hear from you! Or for a more comprehensive and detailed guidance on the redundancy process please get in touch with us today! We are available via email at hello@peachlaw.co.uk or call us on 0161 478 3800. We look forward to hearing from you.

    Disclaimer
    This document is for informational purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given.

    The Employment Appeals Tribunal has confirmed that pay for voluntary overtime normally worked should be included in holiday pay.

    In the case of Dudley Metropolitan Borough Council v Mr G. Willetts and others, the respondents were council workers who were Quick Response Operatives including electricians, plumbers and roofers. They worked voluntary paid overtime, standby and call out work in which the EAT said that these additional payments should be included in the calculation of holiday pay. If they weren’t, the impact of this could be that workers may decide not to take their annual leave entitlement as they may be at a disadvantage if the additional payments are excluded from the calculation of holiday pay. The EAT also found a clear link between the payments and the performance of tasks required under their contract.

    What businesses need to consider …
    •Track and monitor your worker’s overtime and any additional payments you make.
    •How often are you paying additional payments?
    •Is there a financial detriment on the worker if they go on holiday?

    Please note that this ruling only applies to the 20 days holiday as per European Law and not any additional leave 8 days required by UK law for example. That means that employers can pay “basic pay” (without overtime, allowances etc.) only, for 8 days of holiday. This will be an administrative nightmare!
    There is also still no determination of the reference period to be used for calculating holiday pay.

    If you are concerned what this means for you and the impact it may have on your business please get in touch. Our Employment Law team would be happy to discuss this with you. You can contact us on 0161 478 3800 or on hello@peachlaw.co.uk

    Disclaimer
    This document is for informational purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given.

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