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Redundancy: The only solution for your organisation's financial crisis?

Some reports suggest that the downtrodden economic climate is embarking on a new horizon, the future is looking brighter than it has been for UK businesses,  however the immediate prospects are challenging.

In this context where businesses are struggling to justify expenditure on their balance sheets, they may look at the staffing budget as an opportunity to reduce costs. The wrong way to go about this would involve crudely identifying inefficient employees and arranging their dismissal, as the negative consequences of doing so are more than likely to outweigh the benefits, if any.

Where employers do take this route, they should not be surprised to discover within three months, an employment tribunal claim form ET1 landing on their desk with a limited time specified for replying on the claim response form ET3.

How can UK businesses avoid this? The answer is that before moving forward with redundancy, you need to establish that there is a business case which justifies this course of action.

Have you considered reducing your recruitment, decreasing overtime, introducing flexible working which is mutually beneficial, transferring staff to different areas of the business, considering the scope for voluntary wage reductions or perhaps voluntary redundancy. If none of these options are available only then should you consider redundancy, however you should also canvass the opinions of staff before moving forward.

The process and consultation can be straightforward, however if the matter is rushed or dealt with in a haphazard fashion, that ET1 may be lingering around the corner.

The business case and its development lies in your hands.

    About the Author

    Montclare is a specialist employment tribunal advocate and senior redundancy consultant. He deals with the full range of employment law matters bringing and defending claims on behalf of his employee and employer clients. He also manages redundancy programmes for businesses.

    He graduated with a first class honours degree in law, qualified as a solicitor (former) and has completed Stages 1 and 2 of the Higher Rights of Audience Solicitors Regulation advocacy qualifications, being recognised as a competent advocate by the Bar Council.

    Montclare is available to represent his clients in relation to arranging settlements, preparing claims and defence cases, inclusive of completing claim form ET1 and claim response form ET3, settling proceedings, and advocacy for the full range of Employment Law matters.
    Montclare is available UK wide for instruction from employers, solicitors, barristers, employment law consultants and HR departments.

    Qualifications

    LL.B (Hons) Law - First Class Graduate Top 1%
    Higher Rights of Audience Advocacy Stages 1 and 2 - Competent Solicitors Regulation Authority
    Postgraduate Diploma in Legal Practice, BPP Law School
    Qualified Solicitor (Former)

    Employment Law Helpline 0208 885 4369
    email: info@Modavis.co.uk
    http://www.Modavis.co.uk
    http://www.EmploymentTribunalRepresentation.co.uk
    http://www.advicelaw.eu

    The views in this article do not constitute legal advice and the author accepts no liability for any reader's reliance on the same. For assistance or advice on any matter employers are advised to contact the writer directly. Thank you for reading.

    Kofi Annan - Voices on Social Justice

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