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Samuel Phillips Law Blog
Weeks after the shock loss of 786 jobs, P&O’s dramatic approach to managing redundancy remains headline news. We look at the very latest position and outline the correct process
The law requires you to look at means of avoiding redundancies before you proceed to them. It takes some time for the redundancy and notice costs to unwind and for wage savings to manifest themselves. Finally, when you lose staff you lose customer contacts and organisational knowledge. Is it worth it if you are potentially going to have to recruit in the foreseeable future thereby incurring recruitment and induction costs.
In this article, senior partner Robert Gibson explores the three different types of redundancy, including common mistakes in how employers term redundancies. Robert also details the most common types of challenge and advises on the best way to avoid the three main pitfalls facing employers.
Redundancy is where you close all or part of your business or employ fewer people to run it. You begin any redundancy process by asking the question why – what has changed. What steps have you taken already to try and save costs (bank, landlord, suppliers). Going forward what does the “new normal” look like. Take a little time to set down some basic facts and figures in a simple business overview.
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