Advice on unpaid holiday

[dawncbn]

Hello, I own a hair & beauty salon. Things have been hard over the last year. I have 4 part time staff, 2 women on 3 days, the other 2 women on 2 days per week. One college student on an apprentice. Plus me, jack of all trades

Anyhow, I am trying to smile, but this last week has been a disaster, so many cancellations due to the bad weather. My business is already close to the bone. Just making enough to keep the doors open. Last week our takings were only half of what they normally are. So we only just took enough to pay the wages. The rent, water, electric, stock, rates, insurance etc if they were paid weekly then I would have had to close the doors! I did ask one of the girls who works 2 days if she would take a paid holiday, she agreed. One of the other girls who works 3 days to have 2 paid holidays. This will help futher down the line when hopefully busier in the summer months, but it hasn;t helped with cash flow as they were paid holidays.

I have just seen the weather forcast for next week and its more snow!! I wont be able to sustain another week like last week. Am I within my rights to ask all the girls to take an unpaid day? If we get all those cancellations again then I will be in trouble. If the girls agree and they then find it hard with their bills, can they get help with the government? 2 of them already get family credits as they are single mothers. I don't want to make problems for them but I want to try and keep the business going so that we can all keep our jobs. So what do you suggest????
By the way, I don't live in france anymore, back in the UK, just can't see how to change my location on my personal info!

 

[dawncbn]

Hello, I own a hair & beauty salon. Things have been hard over the last year. I have 4 part time staff, 2 women on 3 days, the other 2 women on 2 days per week. One college student on an apprentice. Plus me, jack of all trades

Anyhow, I am trying to smile, but this last week has been a disaster, so many cancellations due to the bad weather. My business is already close to the bone. Just making enough to keep the doors open. Last week our takings were only half of what they normally are. So we only just took enough to pay the wages. The rent, water, electric, stock, rates, insurance etc if they were paid weekly then I would have had to close the doors! I did ask one of the girls who works 2 days if she would take a paid holiday, she agreed. One of the other girls who works 3 days to have 2 paid holidays. This will help futher down the line when hopefully busier in the summer months, but it hasn;t helped with cash flow as they were paid holidays.

I have just seen the weather forcast for next week and its more snow!! I wont be able to sustain another week like last week. Am I within my rights to ask all the girls to take an unpaid day? If we get all those cancellations again then I will be in trouble. If the girls agree and they then find it hard with their bills, can they get help with the government? 2 of them already get family credits as they are single mothers. I don't want to make problems for them but I want to try and keep the business going so that we can all keep our jobs. So what do you suggest????
By the way, I don't live in france anymore, back in the UK, just can't see how to change my location on my personal info!

lots of people have read my thread but no advice yet? Help somebody out there

 

[Bri]

Sorry to hear your predicament. Unfortunately I dont know the legal ramifications, but I believe that you can do it only with the employees consent.

Its going to be a tough call for you as nobody likes to hear they are not going to get paid,especially single mothers. Call a meeting, sit down with them and discuss the situation, calmly and positively. This is only a temporary situation, the weather is going to get better and business will improve soon as.Perhaps offer them a little incentive, maybe an extra day or two onto their holiday entitlement for this year or a thank you bonus at the end of the year, when theyre likely to need it most and youve had time to get back on your feet.

Last resort is the bank, give them the same story and your strategy plan and forecast to upturn the business after the weather spat, they may extend you a small loan or overdraft.

 

[yorkshirejames]

Hard to know what to advise on this one.

Do the staff actually make the effort to come in? Or do they call you and say "can't come in due to snow/kids off school/etc".

In many ways, I'd advise telling them that you are struggling. This _should_ have two benefits:
-they may well be sympathetic to your issue, and agree to a deduction
-some at least will take this as a signal to look for another job. By the sounds of it, shedding a couple of these girls is a Good Thing for your business, and all the better if it is their own choice.

Another practical point - rather than all sitting there twiddling thumbs, is there any point trying to get them to do other things, whether this is a spring clean of your shop, standing on the street with "special offer" leaflets (just do on a home PC/printer) or getting them to go to suppliers to get goods for you.

 

[Tom McClelland]

Again, I can't comment on the legal considerations, but IMHO the legalities are only part of it. If you can't afford to pay them then you can't afford to pay them. You have to sit down with them, and as the other poster has said, calmly explain the situation, that with the amount of business you're doing you'll go under if they can't take some unpaid leave (and if you go under they'll have lost their jobs anyway). So the unpleasant choice from their point of view is to take some unpaid leave to get the business through a difficult patch, or to not have a job.

Naturally you should only do this if you can see no other way of keeping the business running. And of course you should offer any sweeteners that you think you'll be able to afford. (but be careful to not offer so much that you're making your business unviable in the future).

I guess the other side of the coin is to make sure that you've covered all the other ways that you can economise. Ask for a rent-free period from your landlord maybe, because you're doing too little business in the current appalling weather to afford the rent? They might prefer to keep you as a tenant if the alternative is that they've lost you for good...

And the other thing to ponder, if one or two weeks of bad trading push the business so close to the edge is the business really viable in its current form? Is it under-capitalised? Does it normally make enough money? When the business is running well are you making sure that you put money aside for the inevitable rainy days? Are you providing employment to all these people in order to not actually make any money yourself? Are there any other services you could offer at the same premises at the same time to spread your costs?

 

[Employment Law Clinic]

Hi Dawn,

What you’re looking at in terms of unpaid holidays is temporary lay-offs. This can only be done with the consent of the staff, either if the contract allows for this (would be surprised, unless you got something drawn up, as the standard ones from Business Link, etc, don’t), or getting the staff to agree to this.

As mentioned by others, no-one will want to accept an unpaid break from work, but if the only practical alternative is redundancy they may see sense.

Ideally you should start a consultation on redundancies, looking at alternatives. There may be others that emerge, but certainly you could put forward the temporary lay-off option, as this will keep the positions open and is therefore preferable to redundancy for all concerned.

If you go down this route, you’ll also need to consider the cost of redundancy where the staff have sufficient service, and/or whether staff being laid off will reach two years service in the next few months – lay-offs can last for up-to 13 weeks I think it is (but would need to check this) before you are obliged to offer redundancy.



Karl Limpert

 

[tophatandwellies]

If you get cancellations phoning in could you (or one of the girls) offer to go to the client instead? I know its a pain, but if they can get into the shop perhaps they can get to the client. I know I get my hair done so rarely that if the hairdresser offered to come to me when I was snowed in I'd be delighted! And think of the customer loyalty you could build from it. I know there's an associated cost in the travel, but it might be worth the payout.

If you have things like sheltered accommodation near you perhaps you can do a special - we'll come to you and do a cut and perm (do pensioners still all get perms?) for £x, or save £10 when you have 2 treatments. If they're all stuck in they'll welcome the company from someone new, and the chance for a little lux.

 

[yorkshirejames]

we'll come to you and do a cut and perm (do pensioners still all get perms?) for £x

Great ideas - I believe they all get perms and blue rinses. Ah - the benefits of a fresh perspective

 

[Zeno]

Just to play the prophet of doom as usual, I make the following predictions:-

1. As soon as either the words "redundancy" or "unpaid" comes up, your loyal, happy band of employees will be straight down to Citizen's Advice with various nasty threats following.
2. If you try to put in to practice any the good ideas regarding drumming up business etc you will be met with "That's not in my job description", "You don't pay me enough for that" etc.

I would love to be wrong here but in case I am not, you should think about following Karl's advice to the letter.

 

[Cornish Steve]

I don't know what are the legal issues in Britain, but companies (and the government) do this all the time here in the US. Our state, for example, has a huge budget shortfall, so all staff in the university system have been forced to take several days of unpaid furlough (they have no say in the matter). It's either that or a whole load of people lose their jobs. Since you are the business owner, I can't see how anyone can complain: It's your business, your money, etc. What employees will "tolerate" is beside the point. Still, I've learned at these forums that unnecessary regulations throttle businesses in Britain, so you'd better listen to an expert and not to me.

 

[tophatandwellies]

Great ideas - I believe they all get perms and blue rinses. Ah - the benefits of a fresh perspective

Well, I'm sure our OP knows which offers will work in their area, it's merely an example

 

[bwglaw]

In my opinion, you should take direct legal advice, on the basis that your options may well depend on the terms of contract. Your staff may well be workers and not employees which will need to be established first to ascertain what rights they have in order to determine your legal options.

If you email us direct we can provide direct legal advice.

 

[dawncbn]

Thank you everyone for your replies, much appreciated. But, this is a big but, I have tried everything possible in trying to save money, bring in new clients etc. I am 46, been in business for a quite a few years. I was in sales & marketing before changing career at 29 into the hair & beauty business. The problem now is the government is choking us. I am not dreconian. I really do look after and care about the people that work for me along with the clients that come into my shop. I have done everything possible to make everyone happy and comfortable.
I have had a lot of personal heartache in the last two years including the death of my dad 2 months ago.
Since embarking on this project, hands on, including doing up the premises, still own the boiler suit. I got my hands dirty with the builders. I invested nearly £50,000 into it. Spent 2 yrs trying to get back £3,000 back off the original builder through the small claims court. I am going through a difficult divorce in another country after 20yrs of marriage. I am having one of the former employee's taking me to tribunal after being off sick for 6 months and then resigning:|
As a result of this I have had to employ business lawyers at a cost of £75 per month. The list is endless. But after all this, I am still sane, well I think so, just drink a bit more than I should Have to otherwise I will go loopy.
I still care what happens to the workforce. Hence me asking for advice on here.
Thank you for listening

 

[Bri]

Thank you everyone for your replies, much appreciated. But, this is a big but, I have tried everything possible in trying to save money, bring in new clients etc. I am 46, been in business for a quite a few years. I was in sales & marketing before changing career at 29 into the hair & beauty business. The problem now is the government is choking us. I am not dreconian. I really do look after and care about the people that work for me along with the clients that come into my shop. I have done everything possible to make everyone happy and comfortable.
I have had a lot of personal heartache in the last two years including the death of my dad 2 months ago.
Since embarking on this project, hands on, including doing up the premises, still own the boiler suit. I got my hands dirty with the builders. I invested nearly £50,000 into it. Spent 2 yrs trying to get back £3,000 back off the original builder through the small claims court. I am going through a difficult divorce in another country after 20yrs of marriage. I am having one of the former employee's taking me to tribunal after being off sick for 6 months and then resigning:|
As a result of this I have had to employ business lawyers at a cost of £75 per month. The list is endless. But after all this, I am still sane, well I think so, just drink a bit more than I should Have to otherwise I will go loopy.
I still care what happens to the workforce. Hence me asking for advice on here.
Thank you for listening

...the french connection and the post you made some time ago about your divorce.I admire your courage and tenacity to maintain dignity and moral values throughout everything that has been thrown at you.

Unfortunately this has not been reciprocated by the people around you, as with everything we carry on dealing with in this new decade is based around selfishness and greed and I'm only in it for what I can get out of it, sod who I hurt along the way. I'm sorry about repeating myself, but I was told by my ex's father in law some twenty yrs ago that we were'nt charitable. I didnt quite get what he meant until recently, my dad died similarly two yrs this May. I didnt have regrets about 'I wish I'd been able to tell him stuff' because he knew already, little had I known that I had been charitable for years and it had an effect as to how I conduct business. I do not suffer fools gladly, I also have time for those that have something to say as long as its constructive and listen intently. I have an imaginary stick of white chalk in my pocket which I use to tick or strike out an experience. The other saying my father in law used to tell me when I got stressed out from having everything thrown at me at once ' tell me how you would eat an elephant'. I pondered this as some sort of business conundrum, and proceeded to think how I would get the elephant into an oven to cook it etc. The solution was quite simple 'one piece at a time'. Solve what is solvable, achieve what is achievable, the rest is not important.

Take a little step back and look back into your business,do whatever you have to do to save it, even if you have to make everyone redundant, and go it alone. Its a business descision after all, and thats all it is. You can rebuild it.

 

[yorkshirejames]

Good post Bri

 

[dawncbn]

Thank you Bri,

I will try and remember your words of wisdom with the difficult decisions that I have to make in the next couple of days.

 

[thebigIAM]

You might want to explore the short term working regulations.

 

[thebigIAM]

I got interrupted during that last post.

What I meant to add was short term working is often used either leading to redundancy or hopefully as an alternative. If all the boxes are ticked your staff should be able to claim jobseekers allowance for the periods they are not working.