The perils of getting redundancy wrong, and how to get it right!
Unfortunately for some businesses, it’s almost inevitable that redundancies will have to be made. In the unsteady climate we’re currently facing with spiralling energy costs and high inflation, employers are having to consider redundancies to keep their business afloat.
You will have heard in the news about P&O Ferries who’ve come under fire for dismissing 800 of their British employees, who were then encouraged to apply to an agency to continue their employment. It has now been announced that the replacement agency staff are being paid between £5.15-£6 per hour, which is below the minimum wage rate here in the UK. Legislation is due to change this week to force all ferry companies operating from UK ports to pay at least the National Minimum Wage, in a bid to persuade P&O Ferries to reinstate 800 workers it has sacked.
Not only is it crucial to get the redundancy process right to avoid any costly claims, unfair dismissal claims are capped at £88,519, but any discrimination claim based on 9 protected characteristics are unlimited. But it’s also vital to follow the correct procedures to avoid damage to your business’ reputation.
If as an employer you don’t follow a fair and reasonable redundancy process, making simple mistakes in the process can open the door for employees to bring claims before an employment tribunal.
So, make sure you get the process right when letting staff go.
Not quite sure how to do that? Through Chamber Protect, you could get advice and support through the process. Whether you need to talk the issues through with an expert or need guidance on what policies and forms your business should have in place, Chamber Protect is there to help. Find out about Chamber Protect here.
Chamber Protect offers members of Cumbria Chamber unlimited access to quality HR advice and expertise on HR related matters through a 24/7, 365 days a year advice line. Members can also access over 450 downloadable HR documents, including template guides, letters and policy agreements.
To benefit from Chamber Protect you must be a member of the Cumbria Chamber, you can become a member here.
If you’re already a member and want to know more about Chamber Protect, contact us today on info@cumbriachamber.co.uk or 0845 226 00 40.
This article is for general information purposes.
© Cumbria Chamber of Commerce