Employers admit lack of confidence over redundancy considerations

Though firms have taken measures such as pay cuts and sabbaticals to avoid redundancies, experts predict that one in three employers will inevitably have to make job cuts by the end of September 2020.

However, hiring intentions were shown to have increased, with 49 per cent of employers stating that they expected to hire new recruits in the next three months.

A survey of 2,000 organisations by the Chartered Institute of Personnel and Development (CIPD) and Adecco Group found that many organisations were already taking measures to prevent redundancies such as pay cuts, bonus cuts and pay freezes.

Two-fifths of employers have admitted that they are not confident about their ability to make redundancies in compliance with legal requirements, including the redundancy process during and after furlough and how redundancy pay should be calculated, according to the latest research.

The data comes from BrightHR’s survey, which asked employers several questions over their intentions and confidence about potential redundancies as the Coronavirus Job Retention Scheme (CJRS) tapers down before closing completely on 31 October 2020.

The redundancy process

Employers are trying their best to navigate these circumstances, but undertaking redundancies can be a complex area. Communication with their employees at an early stage and being available to answer their questions is essential. 

A robust redundancy procedure, using fair and objective selection criteria and either collective or individual consultation will reduce the likelihood of employment claims in the future. At Mackrell.Solicitors, we can help make this process easier for employers and ensure they do right in terms of their legal obligations towards their employees.

Clarifying the redundancy rules

The Government recently announced that any workers on furlough leave that are made redundant will receive a payment based on their normal wage, rather than the reduced rate of pay they may have been receiving through the CJRS.

The new legislation also clarifies that statutory notice pay should be based on the employee’s normal wages. This paid notice period varies from one to 12 weeks’, depending on the employee’s length of service.

For help and advice on matters relating to redundancy and employment law, contact our expert team today.

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Joanna Alexiou

Joanna Alexiou

Associate Solicitor at Mackrell.Solicitors
Joanna joined the firm’s Employment Law team in February 2020 having previously worked at another prominent firm of solicitors in the heart of London. Joanna has worked with clients from the finance, technology, arts and culture, marketing, charity and food and drink sectors.