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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To make people redundant before Christmas?

85 replies

Beforeorafterchristmas · 16/11/2019 15:03

Hello,

I have a bit of a conundrum and wondering what people would prefer in their situation. I have to lay off ALL my staff (8 in total) because the business is just not profitable anymore. I can maybe last 1-2 more months but then the money is gone. So, I need to tell everyone that they’re going to be made redundant... I’m absolutely gutted and I want to minimise the impact on everyone as much as possible.

So, do I tell everyone now?
OR tell everyone as soon as we come back from Christmas break on 2nd January, closing down on the 31st January?

I feel like if I was an employee I’d want to know ASAP so I could start looking for another job... but is it just going to ruin everyone’s Christmas?

I feel so sick, I’m at a loss! What do you think is the right thing to do?

OP posts:
plightofthealbatross · 16/11/2019 16:13

Glad you're telling them now.

My DH was made redundant once in January, truly sucked. Especially since they knew they were going to do it in the autumn months it turned out, and they let us complete on a house in early December and sent him off to handle a conference overseas for a week right after Christmas first, then did it when he came back ... really, really sucked. Shitty thing to do.

Lovemenorca · 16/11/2019 16:15

Ignorance is not bliss
These are adults with financial obligations
Treat them as such

Inebriati · 16/11/2019 16:17

Tell them now, not just so they don't overspend but because there are still a few seasonal jobs available. Its much harder to find anything in January.

Slappadabass · 16/11/2019 16:17

Tell them asap, it gives them time to prepare, save money, look for another job etc.

It's crap, but if you don't have another option then it is what it is, just tell them so they have time to sort out finances.

maddiemookins16mum · 16/11/2019 16:27

Asap, at least people will perhaps pick up some temp Christmas work which may also help them.

NotaWagon · 16/11/2019 16:30

Yeh, tell them now, I was made redundant at the end of January once (well, I didn't finish my probation) and I felt very used. Better to tell them now.

MLMsuperfan · 16/11/2019 16:33

There's seasonal Christmas work available but they will need to move quickly.

WhichBin · 16/11/2019 16:34

Coming at this from a different angle. If by telling them, could they be putting forward ideas and suggestions to fill the gap of the work that has been lost?

The whole point of redundancy consultation is to look for alternatives prior to making redundancy. I advise in these situations and have previously experienced a similar situation. As soon as the announcement/ consultation process started, one of the sales people put his heart and soul in to searching for additional work / contracts. He basically saved everyone’s jobs.

So the questions are, do you want to close it all down, or do you want to share the dilemma and tell them exactly what is needed to stay operational?

Horrible situation to be in and genuinely hope you can come through this.

Isleepinahedgefund · 16/11/2019 16:42

Definitely tell them now, - aside from the fact they can rein in Christmas, if they start looking now they could easily have new jobs lined up for Feb or soon after

WagtailRobin · 16/11/2019 16:52

The sooner these people are furnished with the facts, the sooner they can start looking for new employment. They deserve the absolute best chance of finding work asap.

Isleepinahedgefund · 16/11/2019 16:52

And for next time, for your own sake don’t be a sole trader, open a limited company. The financial consequences of this will be far reaching for you, and you didn’t have to take that risk.

This is always the worst part of a big insolvency - the knock on effect on the small traders trying to make an honest living and the ripples that sends down through their employees. It doesn’t get talked about enough - after the string of big name failures in recent months there will be so, so many people in your/your employees’ position. I’ve dealt with many insolvent small businesses like this and it’s never nice.

Do the best by your employees and I wish you luck for the future.

JenniferM1989 · 16/11/2019 16:53

I would tell them now OP. About the 2 weeks pay, if it's going to come out of equity in your home, would it not be better just to pay the standard 1 week for less than 2 years service? If you tell them now, you are giving them 10 weeks notice if you intend to pay them off on the 31st of Jan then the extra weeks pay to keep them going until the start of February. You are being made redundant too effectively so you need to watch what you are doing also. I think they'd appreciate 10 weeks notice and a weeks pay. It's a lot more than most employers bother to do regarding the amount of notice

AdoraBell · 16/11/2019 17:06

I’m glad you have said you will tell them next week. My DH was made redundant with absolutely no notice.

Ginkythefangedhellpigofdoom · 16/11/2019 17:21

I personally would tell everyone as soon as possible but give them as much time as possible so they have time to save a tiny bit from their wages and cut right back on Christmas so I'd say next week that the business will be closing on x date I'm sorry I know this is a terrible time of year for it to happen but I wanted to give you as much notice as I could possibly give you all.

You might find a couple of them jump early if they manage to find another job which is obviously inconvenient for you but everyone else at least knows especially before they spend on Christmas.

ReanimatedSGB · 16/11/2019 17:24

I'm so sorry, this is rotten for you and for your staff. Try not to take it personally if some of them get angry with you: hopefully the majority will understand that it is not your fault and you have done everything you could.
The other thing with telling them sooner is that some may be able to get new jobs more quickly, which might save you a bit on wages. (Someone I knew years ago had just applied for another job when the redundancies in our workplace were announced - she kept it quiet that she had got this other job so she started her new job with a nice cushion of redundancy pay from the old one...)

LatinLanguage · 16/11/2019 17:28

Glad you’re doing it sooner rather than later. I was once made redundant at 4pm on Christmas Eve. The boss was most put out when people started packing up to go home as we didn’t finish till 5.30pm. This was an office job, big financial organisation, so not like it was busy anyway at that time.

CupoTeap · 16/11/2019 17:31

Agree as much notice as possible is best. Good luck to you all

jackstini · 16/11/2019 17:32

So sorry you are going through this OP
Agree with everyone else, start consultation process tomorrow

I was made redundant yesterday (along with 8 others) and whilst it sucks, we all agreed it was better to just know the truth asap

middlemuddle · 16/11/2019 17:39

Tell them now. I was laid off at Christmas, but to be fair I had loads of notice.

Isithometimeyet0987 · 16/11/2019 19:06

Sorry to hear this op. As a business owner myself and employer I would tell my staff as soon as I could if I was ever in your position even though I know it will be hard to do, I would want to give them as much time as possible to save and look for a new job and plan ahead with xmas shopping etc. If you set up again though op make sure its a limited company it’s far safer than having to worry about your house of the company get into trouble, this was one of the main reason my business is a limited company.

Isithometimeyet0987 · 16/11/2019 19:10

Also I know this would be a unpopular opinion but as bad as I would feel for my employees I would only pay them the 1 week redundancy pay if the money had to come from my houses equity, I’m sorry but I wouldn’t want to risk my dd home.

T00H0tT00Handle349 · 16/11/2019 23:04

No time is going to be a good time

No point in delaying

Bouncer4me · 16/11/2019 23:05

Definitely now!!

Beautiful3 · 16/11/2019 23:29

I would honestly want to know now so that I didn't over spend at Christmas, and start looking for a job asap.

IwantToDatePicard · 17/11/2019 10:39

I agree that its best to give them as much notice as you can. Good luck.