Probation Period Redundancy

[oliver27]

Hi,

I have 2 X members of part-time staff but their roles are not performing as well as I hoped. They are essentially a cost to the business, and quite a big cost, and I can't afford to keep them on. However, it is not their fault that they are not performing, as I feel as a business we mis-judged the potential success of these 2 x roles.

Both members of staff are on probation period - it states in their contracts that this is for 3 months, and no notice period is required, and that no compensation is required (apart from hours worked).

I want to tell them asap, as obviously the longer they stay on the more money the business is wasting, and I presume the contract stating no notice is required covers this. But I just want to make sure that I am not doing anything wrong. I assume I just let them know the reasons (we misjudged the role in the first place) and that unfortunately there is no work available anymore.

I want to let them go on a fair basis and leave on good terms (I had an informal chat with both of them and said that if they essentially weren't profitable to the business, then I wouldn't be able to keep them on with a business of our size, and they both agreed).

Any advice would be appreciated

 

[Newchodge]

Once someone has been employed for 4 weeks they are entitled to a minimum of 1 week's notice.

They have insufficient service to be eligible to make a claim for unfair dismissal or redundancy, so their only entitlement will be to proper notice. You can give notice and pay them in lieu, rather than having them continue to work during the notice period.

 

[TradeSmart]

I was going to suggest to tell them that you need to let them go, but pay them a weeks notice also.

I know cost its the issue, but this will soften the blow, save you money in the long run and also lets them depart on good terms with you.

 

[oliver27]

Thanks for your advice Cyndy & TradeSmart.

Is this the case even though it says in their signed contract that no notice is necessary? Or are you saying that the one week notice is statutory and thus over-rides anything in my contract?

Also - should I let them know via writing (email) and explain the reasons they are being let go so it can't come back to bite me in any way?

Thanks again

 

[Newchodge]

The statutory minimum notice period after 4 weeks' service is 1 week for every complete year of service, up to a maximum of 12 weeks. A written contract cannot override a statutory right.

I would speak to them individually and confirm what you have said in writing.

 

[oliver27]

Thanks for the clarification. Good advice, thanks again

 

[TradeSmart]

I am not 100% sure on the legalities of the one week notice period. They way I thought it worked though was that if they wanted to leave they had to give you one weeks notice, but if you wanted to finish them, as they are in their probation period, no notice would be needed. My suggestion was just a 'softner' if you like.

Personally I would invite them into a meeting with you and explain the reason and also hand them a letter on company letterhead explaining all the reasons. Make sure you make notes of everything you are going to say to them and learn them notes so it sounds more professional and you wont run the risk of contradicting yourself over anything.

 

[Newchodge]

S. 86 of the Employment Rights Act 1996. As here. http://www.legislation.gov.uk/ukpga/1996/18/section/86. The initial period after which notice is required is a month, rather than 4 weeks, but the principle is the same.

 

[oliver27]

Thanks again for your advice. I will have a discussion with them and then written confirmation after that.

As discussed, will pay a week in lieu or give them the option to work a week if they wish...

 

[ethical PR]

Oliver it sounds like it would be useful to have someone like Newchodge to look over your contracts to ensure they legal and watertight. You don't need to give your employees any reason in writing or otherwise for their dismissal. If they have been good employees do offer a reference to help them get their next role.