Considering alternatives to redundancy

In light of the current economic climate redundancies unfortunately are likely be considered by many organisation across the UK. To avoid those situations Emma Wood, a Personnel Consultant for NorthgateArinso Employer Services highlights the importance of considering alternatives to redundancies in a difficult time.

Temporary Options

• Stopping overtime
  Most employees when paid overtime are paid at an advanced rate. Look at employing basic rate employees to cover this overtime.
• Reducing hours
  Talk to your employees about potentially reducing the hours to a four or three-day week on a temporary basis. Also, look at shift patterns – can these be reduced or alternated? You may also want to negotiate a temporary change in rate of pay.
• Re-train
  Look at up-skilling your staff to ensure they have the levels you need in the business to enable them to be re-deployed into various departments within the business.
• Sabbaticals
  Many members of staff may be looking to take time off to travel the world or even spend time at home with families. Sabbaticals are a great option to consider as this is always unpaid.
• Layoffs
  These are often used as a short-term alternatives to redundancy. This allows you to send people home on limited pay or unpaid for a specific amount of time.

Permanent options

• Natural Wastage
  During this time some of your employees may wish to resign. Also, if you have employees currently going through dismissal processes, make sure you keep on top of these.
• Early retirement
  Some of your staff may wish to take early retirement. If so, discuss this with them and if you are happy with this, allow them to retire.
• End all temporary contracts
  Although these have a fixed termination date, you do have the flexibility to end these sooner.
• Introduce specific purpose contracts
  If you are employing new staff for a specific contract, there is no need to give them full term contracts.
• Compromise agreements
  These are useful to use if you have no other alternatives. You will need to remember that the employee will need to seek advice to ensure this is a correct legal document. It is also recommended that you seek legal advice as well.