Redundancy

[relbbocnam]

Hi all can any one help?? All i see on the internet is employee laws and how many rights they are allowed and they can close you down etc What about my rights?? I run a small business and employ 4 staff and over the last 9 years we have dropped in sales by £33000. This last year dropped by £6600, i have not taken a wage for 3 months to try level out the fall, I have taken out loans in the past and cut all costs to a minimum and now I have now had to cut staff hours. 1 member from 15 to 0-10 a week, 1 member from 20 to 15, one member from 36 to 30 and the last member staying on 30 for now. I have shut on a day that never pays for itself and now the bank has foreclosed on my over draft facility. This is forcing me to consider redundancy for my 36 hour member before they drop to 30 hours to save over £12400 a year. But there is no money anywhere to pay for this? what should i do especially now as the bank wants its overdraft paid off to them in a loan form. The business looks to be on par with last years turnover and it can still run on limited staff. Any advice???

 

[N8rbos]

Hi all can any one help?? All i see on the internet is employee laws and how many rights they are allowed and they can close you down etc What about my rights?? I run a small business and employ 4 staff and over the last 9 years we have dropped in sales by £33000. This last year dropped by £6600, i have not taken a wage for 3 months to try level out the fall, I have taken out loans in the past and cut all costs to a minimum and now I have now had to cut staff hours. 1 member from 15 to 0-10 a week, 1 member from 20 to 15, one member from 36 to 30 and the last member staying on 30 for now. I have shut on a day that never pays for itself and now the bank has foreclosed on my over draft facility. This is forcing me to consider redundancy for my 36 hour member before they drop to 30 hours to save over £12400 a year. But there is no money anywhere to pay for this? what should i do especially now as the bank wants its overdraft paid off to them in a loan form. The business looks to be on par with last years turnover and it can still run on limited staff. Any advice???

Ring acas , they will advise you or cab, an employment law solicitor can advise but charge.

 

[porl999]

I agree with N8rbos. Also maybe have a look Gov.uk and check the redundancy link.

 

[stender]

How long has he/she been an employee? They would be entitled to a statutory weeks money £450 for each year of employment subject to their age. plus notice. Hope im not stating the obvious!

 

[Newchodge]

How long has he/she been an employee? They would be entitled to a statutory weeks money £450 for each year of employment subject to their age. plus notice. Hope im not stating the obvious!

If they have been employed for 2 years they would be entitled to 1 week per full year of service, up to a maximum of £430 per week. If the employee is over 41, every complete year over 41 attracts 1.5 weeks money. Every complete year under 22 only attracts half a week's pay.

They would also be entitled to notice of 1 week for every complete year worked.

You need to be careful. If everyone is doing similar work you need to select impartially for who should be made redundant. This could mean losing 2 people on 15 hours each or 1 on 30 hours.

Are you a limited company?

 

[sjbeale]

Depending on the role your employees do you may need to use a selection matrix to decide who to make redundant with a scoring system, you can't just pick someone out.

You need to conduct consultation meetings to discuss the situation and trying to find ways to avoid making anyone redundant. Listen to your staff they may come up with some good ideas.

If all else fails you will need to make the identified person or persons redundant with the right to appeal against dismissal. You need to pay redundancy pay (with 2 years service), notice pay if they are not to work out notice and holiday pay to termination date.

Support the process with letters and paperwork so you have the paper trail in case of an employment tribunal claim.

 

[stender]

It's £450 now not £430. As I said subject to age on what they get. And it's the government that pay the statutory isn't it? not the employer. You would have to pay the notice i believe.

 

[Scalloway]

I And it's the government that pay the statutory isn't it? not the employer

The government only pays when the employer has gone bust.

 

[Newchodge]

It's £450 now not £430. As I said subject to age on what they get. And it's the government that pay the statutory isn't it? not the employer. You would have to pay the notice i believe.

Sorry, forgot it's now February.
The government only pays if the employer is in liquidation.

 

[ldnsystems]

Well if sales have been dropping because of the employees then this is a cause for poor performance and a termination of employment. I worked on a complex finance project last year where many people were disappearing from their desks every week because of their quality of work. This is also very typical of front office sales professionals, once their numbers drop, they're gone!

This is obviously a very serious case especially if you haven't been paying yourself! I recommend you get to the job centre and inquire about job seekers allowance while you have no wage... you need to be fed and water like everyone else.

I have never been in this situation, but this is my train of thought I guess.

Good luck!

 

[relbbocnam]

Thank you everybody, for your advice