What You Should Know Before Making Redundancies
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The world of business, as it applies to people, is always changing. The way you are running your business may need to change because what is permitted one day may not be permitted the next day due to equality and diversity legislation. If your business is in a decline mode, you may need to think about cutting staff in order to survive. Before acting, you should review the relevant employment contracts and handbooks to confirm they have an up-to-date statement of your company's redundancy policies. If you have spoken with a business owner who was compelled to employ obligatory redundancies, you will have quickly realized exactly how complicated it is when your knowledge of facts is deficient.
When there is a downturn, the best thing is to provide protection for your business and for its employees. An employer must comply with many legal procedures that an employer must comply with for company redundancy. For example, an employer can make an employee redundant if he is closing his business or if there is no longer a need for a job an employee is performing. If an employer is releasing more than 20 employees in a 90 day period of time, he is obligated to consult with a human resources employee representative or with the employees involved in the termination.
Prior to instituting redundancy, an employer may start with a temporary layoff policy. This has a time limit attached to it, and if the limit is exceeded, employees may have the right to claim redundancy. Allowing employees some flexibility in their schedule is a good way to protect employee morale.
Job sharing, part-time hours and term-time working can allow an employer to utilize their employees during flexible hours. Employees may react favorably because they understand that it may be necessary to down size during tough times. One way for a company to reduce it's overheads, is to let some employees telecommute.
As the employer, it is customary to give the employees notice and to those who qualify, severance of one's week pay for each year worked, with a maximum of twelve weeks. Your employees can receive any amount under 30,000 tax free. In addition, as an employer, you should encourage these employees to place some of their money (if received in a lump sum) into a pension plan. It is also a good idea to give redundant individuals the option to seek the services of a company sponsored outplacement counselor.
Article Source: Articlelogy.com
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