Reducing an Employee's Hours or Redundancy due to lack of work

[MessyTessy]

Hello everyone. I am hoping for some advice. I'm a sole trader and have one member of staff, she is on a contract, works 7.30am to 3.30pm Monday to Thursday. I have an on-line retail business. She has been employed for 4½ years. She is my first-ever employee.

She (over) sold herself very well in terms of her capability which has now been uncovered (more below). On the plus side, she is very enthusiastic and self-motivated. However, Covid (she was furloughed twice on full pay 2020 March to Sept and 2021 March to August) and being locked down gave me the chance to review my business without her being there and covering up her shortfalls and it quickly became apparent that she was simply not capable of the very simple but crucial tasks that require any written skills, grammar, spelling or attention to detail. I had to make an investment with a marketing/consultancy company to put me back on track. I have now taken on all of this work myself and despite my best efforts, she simply isn't capable of being accurate and I have to accept this now. Her only role now is to pick and pack orders which she does very as well and maintain the warehouse and office and take in new stock deliveries which only happen 2 or 3 times a year. I am also responsible for dealing with customers' queries as she will often get things wrong there or be unbelievable abrupt and formal. Basically, I am back to the position I was before I took her on but I don't have pick and pack orders.

In short, there simply isn't enough work for her for four days, sales are down, the summer is always quiet for us and prior to covid, these quiet times would be filled with product updating, social media posts etc but, this is no longer possible as she isn't able to do this. Essentially, I am paying her to sit and do nothing all day for at least three of the four days that she works. This is putting an enormous strain on me in terms of having to try and create work for her but also being terrified to give her any as I will ultimately have to do it all over again. There really is no work to create. The furlough periods have also proved that she wasn't needed for several months at a time. for the past two years.

I am now outsourcing more work, such as using professional photographers, using copywriters for my content and so the role required of her is now one of an order picker and packer.

As most businesses, my costs have risen hugely and I have no choice but to make some changes. I just can no longer pay someone to sit and do nothing. As I see it, I have two choices:-

a) Make her redundant or b) reduce her hours of work to two days, Monday to clear orders from the weekend and Thursday to clear before the weekend.

My own preference is b) as I do need someone to pick and pack orders.

I am hoping for any advice you can offer. I am finding this very stressful and I am wracked with nerves but I can't continue to have someone sat doing nothing all day and paying them a good wage as well as electricity costs. Can I legally reduce her hours and if so, what if she doesn't agree to this and simply says "no". We get on very well and I know she will be very upset by this. She has a tendency to undermine me and think she knows better, often ignoring my instructions and doing it her way (for me to have to go behind her and tidy up). When I point out any minor errors, she will spend time looking for a mistake I have made. Because of this, I need to ensure that I am confident and get everything right!

We have worked apart since Covid as I have discovered I work much more productively at home - because she has no work to do, she would be happy to talk all day and it is impossible for me to work during office hours meaning I was working late until the evening and weekends which I don't want to do anymore.

Any help would be greatly received. I know this must be a nightmare situation for employers.

 

[japancool]

Have you discussed any of the issues with her?

 

[MessyTessy]

Have you discussed any of the issues with her?

No not yet, I want to make sure that I have established what I'm able to do first. I have just checked her employment contract and there is a clause in there where I reserve the right to change hours of employment as and when required.

 

[WaveJumper]

Two issues really the first which takes up most of your post the employee has been with you for four and a half years have you carried out yearly reviews, addressed any issues you had with their performance etc etc?

The second: yes you can change hours but worth having a read through on here before taking any action:

How they work - Lay-offs and short-time working - Acas

If an employer does not have enough work or has to temporarily shut down, they might be able to consider lay-offs or short-time working.

www.acas.org.uk

 

[MessyTessy]

Two issues really the first which takes up most of your post the employee has been with you for four and a half years have you carried out yearly reviews, addressed any issues you had with their performance etc etc?

The second: yes you can change hours but worth having a read through on here before taking any action:

How they work - Lay-offs and short-time working - Acas

If an employer does not have enough work or has to temporarily shut down, they might be able to consider lay-offs or short-time working.

www.acas.org.uk

Thanks WaveJumper, we have had regular reviews. Whilst the mistakes are annoying, it certainly isn't anything I would formally document or have a disciplinary about. We talk about it at the time and there is always a reason why things happened, the computer cut out or "no, I definitely did it right" etc. I've accepted she won't be able to improve in these areas so I have worked to her strengths and developed her role around those.

My main concern is that there really isn't enough work for her for four days a week and that's the bottom line. I don't want to make her redundant as I value her as an employee and I need her services but only for two days. I simply can't pay someone to sit and do nothing all day. From what I see on the ACAS sight the short time working means she continues to get paid but can stay at home! That's not something I could contemplate. It sounds like a furlough fully funded by the employer.

 

[MBE2017]

Personally I would make her redundant, and then get a part time packer in, ensure the job role differs to her description when took on. Take proper advice on the correct manner to avoid any problems.

Despite saying you want to keep her, you typed an awful lot about her shortcomings, that will not improve even if you keep her on.

 

[kulture]

I would be very careful about making any redundancy and then hiring a new person. It may not be seen as a new job and in any case you should have offered her it first.

Certainly take professional advice as this is a potential minefield if you don’t go about it in the correct way.

 

[MessyTessy]

I would be very careful about making any redundancy and then hiring a new person. It may not be seen as a new job and in any case you should have offered her it first.

Certainly take professional advice as this is a potential minefield if you don’t go about it in the correct way.

Thanks Kulture, I really would like to keep her, despite her shortcomings in some areas, she has proven to be very good in others, she's trustworthy, very reliable and enjoys her job. My preference would be a reduction in her working days rather than making her redundant. Given the past couple of years, I can't be the only employer who has found themselves in this position.

 

[japancool]

She has a tendency to undermine me and think she knows better, often ignoring my instructions and doing it her way (for me to have to go behind her and tidy up)

You should not be doing this. You're the boss, not her.

Forgive me for saying so, but it sounds very much like you've brought the difficulties with her on yourself. You haven't been firm enough and made it clear what is acceptable behaviour. This has reduced her productivity, not because she can't improve but you have allowed her to get away with *not* improving.

 

[MessyTessy]

You should not be doing this. You're the boss, not her.

Forgive me for saying so, but it sounds very much like you've brought the difficulties with her on yourself. You haven't been firm enough and made it clear what is acceptable behaviour. This has reduced her productivity, not because she can't improve but you have allowed her to get away with *not* improving.

You are absolutely right, I have to take a lot of responsibility for what has happened. The first two years we were so busy with the new premises, the next two years she wasn't there much due to furlough and that is when it became apparent that things were some serious shortfalls.

Short of sending her back to school to learn spelling, grammar and descriptive writing, I have accepted that things will not improve and it's time to move forward, accept things as they are and work to strengths. I will take the product work back as it's quicker to do it myself and then outsource it to a copywriter who specialises in product descriptions and SEO. Her role is now a picker and packer and to manage the warehouse along with some basic admin such as sourcing stationery etc - which she does very well - this is where her strengths lie. This actually suits me very well and ends the pressure of me having to try to teach her SEO, how to spell and to follow simple instructions which is futile. I guess my only option is to reduce her hours due to a lack of work. My costs have increased substantially and I can't pay someone to sit in the office not working for two or three days a week.

 

[Newchodge]

First of all you MUST separate her ability from your need for fewer hours. They are completely separate issues and mixing them up will cause you problems.

Redundancy is legally defined as a reduction in the need for work of a certain kind t a certain place. If you can demonstrate that you have less need of her now then go down the redundancy route.

Start by having a 'formal' meeting with her - formal in the sense that you tell her in writing that you wish to talk with her about the future of the company and her role in it as there has been a reduction in the work needed and this may lead to redundancy. Have the meeting within 24 hours of giving her the letter.

Go to the meeting prepared with 'the figures' - ie how much she would receive in redundancy pay, notice pay and ourstanding holiday pay. (The redundancy element is free of tax and NI).

Explain the position with regard to workload, ask her if she is aware that there are periods when she has little to do. Explain that your current thoughts are that you no longer need someone for 30 (?) hours over 4 days per week. Explain that you do need a picker/packer for 2 days, (?) hours. Ask her if she has any suggestions about how she could be fully employed on her current hours. LISTEN carefull to any answer she gives. Suggest she may like to think about it overnight and also consider whether she would be interested in the 2 day job. Explain 'the figures' to her and explain that, if she would like to take the 2 day job she would not be entitled to any of that payment (although you may choose to giver her a sum in compnesation).

Arrange for a further meeting the following day. She may come up with suggestions that may benefit your business that you had never considered. That is the purpose of redundancy consultation. She may be happy to accept the 2 day job.

At no stage discuss her capability issues unless she proposes something that you feel she cannot do.

If redundancy is the outcome I would strongly recommend that you give notice immediately it is clearly the outcome and that you tell her she is not required to attend work during her notice period.

 

[pentel]

@Newchodge Very precise and good advice.

 

[MessyTessy]

First of all you MUST separate her ability from your need for fewer hours. They are completely separate issues and mixing them up will cause you problems.

Redundancy is legally defined as a reduction in the need for work of a certain kind t a certain place. If you can demonstrate that you have less need of her now then go down the redundancy route.

Start by having a 'formal' meeting with her - formal in the sense that you tell her in writing that you wish to talk with her about the future of the company and her role in it as there has been a reduction in the work needed and this may lead to redundancy. Have the meeting within 24 hours of giving her the letter.

Go to the meeting prepared with 'the figures' - ie how much she would receive in redundancy pay, notice pay and ourstanding holiday pay. (The redundancy element is free of tax and NI).

Explain the position with regard to workload, ask her if she is aware that there are periods when she has little to do. Explain that your current thoughts are that you no longer need someone for 30 (?) hours over 4 days per week. Explain that you do need a picker/packer for 2 days, (?) hours. Ask her if she has any suggestions about how she could be fully employed on her current hours. LISTEN carefull to any answer she gives. Suggest she may like to think about it overnight and also consider whether she would be interested in the 2 day job. Explain 'the figures' to her and explain that, if she would like to take the 2 day job she would not be entitled to any of that payment (although you may choose to giver her a sum in compnesation).

Arrange for a further meeting the following day. She may come up with suggestions that may benefit your business that you had never considered. That is the purpose of redundancy consultation. She may be happy to accept the 2 day job.

At no stage discuss her capability issues unless she proposes something that you feel she cannot do.

If redundancy is the outcome I would strongly recommend that you give notice immediately it is clearly the outcome and that you tell her she is not required to attend work during her notice period.

Hi Cyndy - I can't thank you enough for this reply, it has really clarified things, cleared my head and alleviated my anxiety - I'm so very grateful.

She is a very good worker and has worked in difficult circumstances for the past 18 months. I've had to take so much time off work for my elderly parents (my mum got dementia and died of Covid last year, my dad has needed constant support and is now in palliative care after contracting Covid recently). This has meant that I have had to supervise and organise work often from a distance which is not ideal.

My first job will be to establish what tasks she is responsible for now and what if any other tasks she can undertake. Likewise, I will establish my own role - this will help me ascertain our workloads. My life will soon return to a more normal routine and I'll be able to spend more time with her and in the office which I know will help with her development and importantly, my ability to supervise and manage her. It may be that I will only need to reduce her days by one until we get busy again.

Thank you again Cyndy.

 

[Paul Kelly ICHYB]

First of all you MUST separate her ability from your need for fewer hours. They are completely separate issues and mixing them up will cause you problems.

Solid gold advice (as it all is!).

 

[MessyTessy]

Solid gold advice (as it all is!).

Isn't it just! It was my first post and reaching out for help and I appreciate every response - especially over the weekend. I had got myself in a bit of a panic about it all and I now have a much clearer head and plan to move forward.