Page 23 - BOSS Today Issue 48

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n Implementing pay freezes or pay cuts economy, if alternatives are available. that redundancies become necessary after
n Cutting or stopping bonus payments A further compelling reason for all. At the very least, the employer should
n Reducing overheads employers to try to minimise redundancies notify employees that it needs to make
is the possibility that some redundant cost savings, the reasons for these and the
The Business Case For employees may claim unfair dismissal. In initiatives that it is considering.
Considering Alternatives a climate where dismissed employees face It is common for management to want
In addition to the redundancy pay costs, difficulties securing new employment, to ‘keep things close to their chest’ for
there are ‘hidden’ costs that employers they may seek compensation if they fear of unsettling employees. However,
tackling an economic crisis by cutting jobs perceive that there has been inadequate employees are far more likely to become
may also have to bear. These include: the individual consultation, a biased selection discontented if they are kept in the dark
cost of the management time that will be process or a failure to offer alternative and patronisingly reassured that ‘all is
necessary for planning, consultation and employment. Even if a claim has little well’, when they know it is not. Employees
administration; the effects of low morale chance of success, the employer will still usually will be well aware of the situation
among the ‘survivors’ of the redundancy be faced with the investment in time and and the potential risks to the viability of
exercise; reduced productivity; and the the cost of responding to the claim, as well the business, so openness and honesty
likelihood of increased sickness absence as potential damage to its reputation. represent a much better approach. If an
and staff turnover. employer adopts this approach, whatever
Employers that have drastically cut staff The Importance Of Keeping measures it subsequently proposes or
numbers will also be ill equipped to take Staff Informed takes, employees are much more likely
advantage of new opportunities when the Employers that are facing the need to cut to understand the need for them and
coronavirus outbreak is controlled and costs should, at an early stage, enter into to cooperate with management than if
economic conditions begin to improve. constructive dialogue with their employees decisions are made unilaterally or without
They may also find that skilled people (or employee representatives, where a warning.
are reluctant to accept job offers, as an Trade Union is recognised or a workforce
employer that has shed staff in difficult committee is in place). The timing and For further advice and guidance on how
times may not be seen as an employer of extent of such communication will depend to implement alternatives to redundancy
choice. In addition, there will be the costs on the urgency of the measures required. during coronavirus, email
of replacing the redundant employees Consultation is not only useful, with coronahelp@bossfederation.co.uk
when business picks up again. Deciding the workforce potentially having some
on redundancies in order to cope with a valuable ideas about how costs can be cut,
current downturn may therefore be a false but may also be obligatory in the event

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