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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

AIBU to reduce her hours

76 replies

BycullahRoad · 13/04/2022 06:58

Name changed as do not want to be too outing.

I run a very very small business and I have just one employee. I have employed her on a part time basis for over 10 years. She is someone to talk to for advice, she covers for me if I am unavailable, and is frankly better at certain things that I am. Having her around means I can take holidays and have sick days etc. We have been a good team. I think she appreciates the job, as it has provided a steady income for her and she is able to arrange the work around the school run etc.

As I am getting older, my business is declining, and with efficiencies that have been made, frankly there are not the hours that need doing anymore. With recent minimum wage increases I can no longer afford to keep her on the hours she is doing, but I don't want to lose her. A few months ago I suggested that she reduces her hours and get another part time job elsewhere. She says she does not want to as she would lose her tax credits. She has said that if I reduce her hours she will have to leave. Just discussing this has created friction between us.

I'm in a dilemma, I don't want to lose her, because then I would have to recruit and train a new person, but I can't afford to keep her on the hours she is being paid for. Suggestions anyone?

OP posts:
girlmom21 · 13/04/2022 07:01

If you can't afford to keep her you don't have many choices here.

Do you pay yourself a set salary? Is there any movement in that instead?

Presumably you run a premises - any options for cost saving there? Can she WFH?

Mumdiva99 · 13/04/2022 07:03

This is business. If you can't afford to keep her then you need to reduce her or your hours. If you reduce her hours make sure you do it all properly - follow the correct HR processes and timelines.

It's a good time for her to find another part time role as there are lots about. (I would be suprised if she leaves completely- but if she does thank her for her work and get recruiting. If you are a school hour friendly role you should find it easy to fill).

LIZS · 13/04/2022 07:03

You would have to make her redundant and pay accordingly. How many hours are you paying now?

ChateauMargaux · 13/04/2022 07:05

Can she be tasked with increasing business so you have more income for both of you?

autumnboys · 13/04/2022 07:06

This is a difficult situation for both of you. You are not being unreasonable if you can’t afford to keep her on, but you may need to think about how you approach it to try and get the most positive outcome. It sounds as though your main concern is around the inconvenience to you in needing to recruit and train someone else, rather than for her, needing to find a new job. I hope you can find a solution that works well for both of you.

RonaldMcDonald · 13/04/2022 07:07

You are going to need to make her redundant. It isn’t personal. There isn’t the money available.
Deep down you know that she isn’t going to be pleasant and that is sad. Let her know that it is that serious and invite her to chat about it in consultation.
Then she can accept fewer hours or redundancy.

MRex · 13/04/2022 07:12

No, you can't do that. Why is your business declining, can she not reverse that trend? As @ChateauMargaux suggests, increasing business to give her stuff to do resolves the issue. If not can you consider selling the business, if you're done with it anyway? If those options won't work then make her redundant and wind up the business when you're ready.

Thehop · 13/04/2022 07:12

You don’t have to make her redundant. You can’t, because you do need the role filling, you just need to reduce her hours!

Sadly, you have no choice. Explain it to her and say you’ll work with her round another p/t role and hopefully she’ll understand.

Lots of people cutting back now.

Good luck OP

Original poster
BycullahRoad · 13/04/2022 07:16

Can anyone help me in relation to tax credits so that I can help her with that particular issue? Apparently you need a payslip stating that you work 16 hours a week. Would two jobs of 8 hours a week also count?

OP posts:
Loopytiles · 13/04/2022 07:18

Just follow employment law and accept that it’ll be unpleasant and that you might well have to seek to recruit, train and retain someone new.

Is your business still financially viable? Don’t understand why your age is relevant to your business performance, unless something like you’ve reduced your hours and this has negatively affected things.

Loopytiles · 13/04/2022 07:18

Tax credits etc is a matter for her to sort out.

BitOutOfPractice · 13/04/2022 07:21

I’m struggling to understand how someone who covers for the owner of the business is on minimum wage!

fairylightsandwaxmelts · 13/04/2022 07:22

Is it even legal to make her redundant if you're just going to hire someone to replace her on less hours?

Loopytiles · 13/04/2022 07:24

Not at all ‘hard to understand’, bitoutofpractice if you understand basic economics! OP offered a role on minimim wage, her employee accepted.

girlmom21 · 13/04/2022 07:26

@BycullahRoad

Can anyone help me in relation to tax credits so that I can help her with that particular issue? Apparently you need a payslip stating that you work 16 hours a week. Would two jobs of 8 hours a week also count?
You can't fudge the system for her.

If she's only doing 16 hours and you can't afford to pay her that how much longer is your business going to last, realistically? Can you afford to make her redundant?

Ohdoleavemealone · 13/04/2022 07:44

@BitOutOfPractice

I’m struggling to understand how someone who covers for the owner of the business is on minimum wage!
I found out this week that a family member in a job for 20 years gets paid £10 an hour as a manager of a business. I pay my staff this for much less work. It all depends on the role and what the business can afford.
Original poster
BycullahRoad · 13/04/2022 07:44

@girlmom21, no my business probably is not viable for much longer, but I am close to retirement age. Not trying to fudge the system but I was wondering if I kept her on for 8 hours a week, would she be able to get another job elsewhere for 8 hours and still get her tax credits?

OP posts:
LIZS · 13/04/2022 07:52

[quote BycullahRoad]@girlmom21, no my business probably is not viable for much longer, but I am close to retirement age. Not trying to fudge the system but I was wondering if I kept her on for 8 hours a week, would she be able to get another job elsewhere for 8 hours and still get her tax credits?[/quote]
Probably, but how realistic is it for her to find another 8 hour job? Are you likely to be able to replace her on the same basis? It might trigger her to be moved onto UC which is a minefield in itself. Reducing hours could trigger redundancy.

gettingolderandgrumpy · 13/04/2022 07:56

I assumed it was 16 hours regardless of one or 2 jobs . I suspect what your employee means when she says she will leave when her hours will be reduced because finding another job on 8 hours won’t be easy plus the inconvenience of travelling between jobs ,plus her home life so she’ll get another part time job of around 16 hours . I also suspect she stay’s because it’s convenient as she’s probably under no allusion that the work is no longer viable.
If you can’t afford to pay her not much you can do and sounds like the company not going to last too much longer.

Original poster
BycullahRoad · 13/04/2022 07:59

I'm just trying to do things in the nicest possible way bearing in mind she has been an employee for over 10 years and has helped me out on many occasions.

OP posts:
Ponoka7 · 13/04/2022 08:00

Tesco do jobs starting at 10 hours a week, so do most retailers. The issue she then might have is childcare. She might have to leave because to work another eight hours a week it might be spread out and she gets no time with her children. Either way you are going to retire and you both need to plan for that. I do agree that she should have been on a higher wage if possible, it sounds as though she's been in a manager role.

BuffyFanForever · 13/04/2022 08:22

Your idea of two 8 hour a week jobs isn’t feasible. What other job can you honesty think of that is only 8 hours per week?

Queenoftheashes · 13/04/2022 08:27

How about a Saturday job in a shop?

girlmom21 · 13/04/2022 08:30

Bite the bullet and make her redundant.
That way she won't have to quit so she'll still be able to claim something.

girlmom21 · 13/04/2022 08:30

@Queenoftheashes

How about a Saturday job in a shop?
That won't help someone who works school hours and OP can't decide this woman's future jobs for her