Contents tagged with Redundancy Pay
Employees on maternity leave have special legal rights and protections and so before making such employees redundant you must tread very carefully and be aware of the following five things. Otherwise you could risk facing a costly claim.
Genuine Redundancy Situation
You must be able to prove that there is a genuine need to reduce your headcount. If the real reason you want to dismiss your employee is because she has had a baby or is on maternity leave, you will be discriminating against her and could face a discrimination claim. So, you must have evidence to prove why you need to make redundancies.
Fair Selection Process
You must choose who you are going to select for redundancy fairly and reasonably. This means you must choose a reasonable selection pool and apply fair, … more
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.
If you don’t consult employees in a redundancy situation any redundancies you make are likely to be unfair.
If you plan to make fewer than 20 redundancies then there are no set rules relating to the length of the consultation process but it is good practice to … more
The economic downturn has meant that business owners have had to be more creative with both their business ventures and motivating their staff. Recently it seems that even the government is following pursuit, as last month the Chancellor of the Exchequer, George Osborne, announced plans for a new kind of ‘employee owner’ employment contract, as part of the plans to improving the UK economy and creating greater employment flexibility.
The government aims to allow companies to offer the new type of contract from April 2013.
Under the new status, employees will be entitled to between £2000 and £50,000 of shares, which will be exempt from capital gains tax, in exchange for giving up the following rights:
1. Unfair dismissal … more
In some industries work is seasonal and employees expect a short lay off and/or ‘short time’ working period per year to cater for this, most employees use this period to take their annual leave. Unfortunately for the majority of businesses laying staff off or putting them on short time hours has resulted from the challenging economic climate.
As businesses continue to face hard decisions like whether they should make staff redundant or whether they should consider a temporary ‘lay off’ period in the interim to ascertain whether business will eventually pick up. This short blog is designed to guide you, as a business owner, as to when a ‘lay-off’ or ‘short time’ is appropriate.
Please note: the statutory procedure for lay-offs/ … more