The last three months of the year look like they will be tough for many businesses as the furlough scheme begins to wind down. More employees will now face the very real prospect of making staff redundant if the local furlough schemes are enough.

Of course, no business wants to make this decision, especially for loyal staff as Christmas looms. But there are some other avenues worth exploring before you go down the redundancy route.

Here we outline some to consider:

Lay-offs or short-term working

If you think your business will bounce back after riding out a few more months of turmoil, then this option could be for you.

This is a real alternative to avoid compulsory redundances when a business is experiencing a downturn in work or income.  Employees can be placed on short-term working where there is a clause in their contract allowing employers to do so. If there isn’t a clause in their contract, then this could breach the employees’ contract of employment, which inturn, allows them to resign and potentially claim unfair dismissal.  We can help with contracts and advise you according should you wish to explore this option.

Variations to an employee’s contract

If you want to ensure that an employee comes back to full time employment when the pandemic is over, a variation in their contract is something to seriously consider. If an employee is particularly loyal or skilled, that the prospect of losing them altogether wouldn’t be something you would entertain. A variation in contract is a way for you both to reach a decision that suits both parties and avoids redundancy.

The first thing to do before starting this process, is to talk. A change of employment cannot be implemented without agreement by both parties. You may need to discuss a reduction of hours, a reduction in pay or responsibility to help get the business to where it was. But by doing this it means that you can provide some kind of work for your employee and you can negotiate them back up to where they were when business returns back to normal.

If you need any advice or help in order to avert redundancies within your business, then let’s have a chat.

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