Uncertainty, lack of demand and enforced business closures following the UK outbreak of Coronavirus has left businesses with some hard decisions to make.
Many business owners are currently facing difficult decisions in order to secure a future for their business. One such decision is whether you need to make staff redundant.
If you are an employer that unfortunately needs to make redundancies as a result of Coronavirus, it is vital that the correct procedures are followed.
While redundancies might be made to save costs, businesses can face large compensation claims that outweigh the costs savings if the correct steps are not followed.
It’s fair to say that the virus has impacted everyone, in some form or another, and emotions will be running high. This is why it is more important than ever to ensure that redundancies made by your business are fair.
A fair redundancy
In order for a redundancy to be fair you must have a fair redundancy selection criteria and a consultation process must be followed. This includes considering alternative employment in the business. The selection process must be objective and cannot discriminate on protected characteristics or personal preference.
If you are making more than 20 members of staff redundant, then you must begin the consultation with a union or employee elected representative at least 30 days before the first dismissal. If you need to make 100+ employees redundant this period is increased to 45 days.
Affected employees must be given the correct notice, either statutory or the notice outlined in their contract of employment, and for those entitled to one, a redundancy payment also.
For more information on the risks of unfair dismissal claims arising from redundancies made in the Coronavirus crisis contact Verisona Law’s employment team on 02392 98 1000 or email firstname.lastname@example.org
Here are the types of cases we handle:
- Contracts of Employment
- Employer Staff Handbooks
- Redundancy Process
- Breach of Contract
- Breach of Restrictive Covenants
- Tribunal Claims
- Settlement Agreements
- Consultancy Agreements
Sports and Football Law
- Contracts of Employment
- Service Agreements
- Contractual Issues
- Executive Departures
"Over the years, I have developed a great trust in my working relationship with Mike Dyer, Head of Commercial Law at Verisona. One of the things I value most is that he is always at the end of a phone. On the rare occasions he is unavailable, his secretary is always well informed and very helpful. Through Mike, I have met many other members of Verisona and, just like in the recruitment industry, they understand the importance of being treated like an individual. They make me feel valued and important to both them and their business. At Verisona, you always deal with real people who you know and are in a position to help. Most importantly, Verisona delivers. We recently had an urgent situation regarding the restrictive covenants of new members of staff. Employment specialist Susan Ball came in on a day off to listen to us, dissect and analyse the situation, and translate what we wanted to achieve into the best possible legal language and solution. This is just one example of the calm, efficient professionalism I have come to value from Verisona over the years. Verisona has a refreshing approach to the law. They are there when we need them, always easy to talk to, go out of their way to make sure that we understand what they are doing for us and why, and always get the best results".
Legally enforcing the tribunal award
To enforce the Tribunal award we applied to the Defendant’s local County Court for it to be registered and for permission to enforce the award.
The Court granted the application and on the Register of Judgments, Orders and Fines. As a result the Tribunal award would appear as a County Court Judgment which would likely affect the Defendant’s credit rating.
Time limits for enforcing Tribunal awards
It is worth noting that there is no time restriction for registering or enforcing a Tribunal award. You can enforce one even if it is several years old. In addition, it is usually possible to claim interest on the amount until you receive payment.
A commercial business
"Thanks for all your help on this - you've been so helpful to me in guiding and explaining everything, so just to say thank you for obviously helping represent my case but also allowing me to understand the process and giving me greater awareness of what I need to be mindful of when signing future contracts".
Former employee of professional football club
Sue was easy to deal with and offered all options available. Jane was in contact beforehand to tell me what information was needed and Sue was prepared for our meeting. I cannot praise Sue and Jane enough and would have absolutely no hesitation in reommending Sue and her team.