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Tag Archive

Consultations and Compulsory Redundancies

Following on from our article ‘How to avoid compulsory redundancies’ a few months ago, unfortunately there can be instances where a business simply has no alternative but to consider cutting staff to reduce costs.

If that is the case then there are important rules that you must follow and if you fail to do so then any redundancies you may make could be unfair and you could be taken to a tribunal. You must identify which people you will make redundant and ensure you select people fairly.

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How to avoid Compulsory Redundancies

We wrote recently about how the liquidation of a large company can have potential indirect consequences for small and medium businesses. Through no fault of their own, a small or medium sized business can suddenly find that cash flow is drastically affected.

Often, in those circumstances, the knee jerk reaction is to look at ways to reduce outgoings and one of the simplest ways to do that is to reduce staff.  Many small businesses are reporting that following the collapse of Carillion they may have no alternative but to look at making staff redundant.

It is however worth considering that there are ways to avoid making compulsory redundancies, which can sometimes be costly in the short term.

Before you conclude that redundancies are necessary, consider the following options –

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Brexit and Redundancy; a guide for employers

As the Brexit negotiations start getting into full swing and the likes of JP Morgan start looking at moving their offices away from the UK this will mean redundancies are inevitable. While your business may not to the same scale of JP Morgan, if you lose contracts then it will mean, you will need fewer employees to deliver the service. Again, redundancies are inevitable, so here’s a quick guide to ensure that you remain within the right side of the law. 

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