Even the most successful businesses and organisations face the need at some point to reduce overheads, and as staffing costs often represent one of the largest spend for a business; redundancy should be used as a last resort.
There are a number of temporary solutions via which a business/organisation can achieve this for example agreeing a period of short-time working (e.g. reducing to a 4-day week) or through laying off staff for a brief period. Employees may even accept a temporary cut in pay to avoid redundancy*. Unfortunately, the only permanent solution may be to consider redundancy.
Of course, employers are entitled to make redundancies for genuine reasons when they have a need to do so but as you may expect, there are procedures that must be followed in order to ensure that you do not fall foul of employment law in redundancy situations. Not following or a deviation from the proper procedures with regard to redundancy may result in claims of unfair dismissal, breach of contract, or discrimination and in some cases multiple claims.
For advice, guidance and support on all aspects of redundancy, lay-off or short-time working contact Colaw.
* Care should be taken if you intend laying off staff, putting them on short-time working, or cutting pay as failure to address these issues properly may result in breach of contract claims.