| How to deal with the threat of redundancy |
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| 12 January 2009 | |
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Many companies have already begun to downsize, and the fear of
redundancy is spreading throughout the economy. Employees who may face
the possibility of losing their jobs need to be both flexible and well
prepared. Jo Keddie, Head of the Employment Department, Dawsons
Solicitors, provides some useful tips.
Make sure you are familiar with the legal obligations owed to you regarding redundancy. A helpful guide can be found on the ACAS website (http://www.acas.org.uk/index.aspx?articleid=1461) which is a good starting point.
Be aware of your contractual rights
Obtain and double check your present contract of employment. In particular, check your notice period (and whether any payment in lieu can be made to you), your annual holiday pay and the arrangements for any bonuses or commission. Be aware of any term in your contract or in any bonus scheme that stops your bonus or commission being paid to you if you are under notice (because you are redundant).
Pay attention to business performance
Be alert to downbeat messages or the imposition of unrealistic and urgent targets by management. These are often an early indication that performance is suffering, which may well result in head count culls later.
Be proactive
If you receive unwarranted or unfair criticism, respond to it promptly (ideally orally and by e-mail) to set out the true position.
If you are being sidelined, or not given sufficient work, be prepared to challenge your employer and require more work.
Consider a grievance if your concerns are well founded. Ideally, make sure that any grievance is raised before any redundancy procedure starts.
Keep a papertrail
Keep a diary of events at work that could give rise to a redundancy situation. Also keep a diary of any concerns that may give rise to a grievance. Keep a record of e-mails and communications covering both scenarios.
Keep records of your performance, achievements and any client or customer accolades. These may be useful to support any challenge by you regarding your redundancy.
Be prepared to challenge your employer
You should not be afraid to challenge the reasons given and the process followed in respect of your redundancy. Employers often pay lip service to statutory obligations and race through the statutory process. If the employer fails to comply with its statutory obligations any dismissal could well be unfair and result in higher compensation for you.
Be flexible
Redundancy can be avoided if you are prepared to be flexible. For example, be open minded as regards any suggestions for a pay cut, shorter hours or even a period of unpaid leave if this helps you keep your job.
Consider re-training
Employers are required to conduct a search for suitable alternative employment for you if you are at risk of redundancy. Therefore, be prepared to be flexible about other roles within the business. Think about the future and consider whether you should be retraining now or learning new skills. Consider external courses and night school. Update your skills generally.
Look at previous redundancies
In the current climate, previous redundancies may well have happened in the last year. Try to find out what packages have been paid to other employees. Specifically, are there any enhanced redundancy terms (such as one month’s pay for each full year worked)? How have bonuses and commission been dealt with previously? Ideally, you want to ensure consistency regarding your own departure package.
Financial protection
Check whether you have any legal costs cover under your household and contents insurance policy (which often provide up to £50,000 for employment claims), and any mortgage or other income protection. If not, it may be worth taking advice on the benefits of these policies should the worst happen.
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