Whilst planning how to save costs in a business is a difficult and stressful and the ‘quick fix’ of lowering head count might be attractive, HR practitioners should not jump to the conclusion that redundancies are an inevitable part of the process. Redundancies tend to damage morale and may impact on a business’ ability to remain viable and to regain its competitive edge when the market picks up. Alternatives to redundancies are often not easy, but www.hrlaw.co.uk is here to guide you through the options!
With any of the methods outlined below, you must firstly ensure that the correct process is followed. In most cases the proposed change will require the express consent of the employee before it can be implemented. A Tribunal would also expect you to demonstrate that you have attempted to save costs through other means (such as cutting back on your training or client entertainment budgets) before taking steps which impact on your employees’ earnings. Below are some possible alternatives to redundancy:-
Whilst these measures won’t suit all businesses, it is worth considering some creative solutions to see whether it is possible to avoid compulsory redundancies and to retain some key employees until the market recovers. If none of the selected options are viable for your business then ensure that a fair selection process is used for deciding who should be made redundant.
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