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Need to make some cut backs - how to approach it.

4 replies

helsi · 11/03/2007 19:16

We took over a business in December and so the employees we aquired are covered by TUPE legislation - however, a few months in and we need to make some cutbacks for economical reasons.

we have decided on a particular employee as out of the 2 we could choose from this one is not as organised etc as the other one.

Does anyone know how we should approach this? is that reason good enough? anyone knw f the wording to put in letters to employees who have been selected?

OP posts:
tribpot · 11/03/2007 19:18

Definitely not an expert but I think you'll need to demonstrate that the post is surplus to requirements, not the person (i.e you can't just hire someone better in the role once you've offed the current encumbent).

I would tread very carefully around this and seek professional advice before doing anything.

helsi · 11/03/2007 19:43

will seek advice from ACAS tomorrow. To be honst we would not fill her post again with anyone else as we can manage without that role and the business we bought really does not finaincially sustain that role.

OP posts:
chocolatekimmy · 11/03/2007 21:24

You clealy need professional advice regarding this.

First you need to consider the business case with regard to costs and cut backs. Maybe you need to re-organise workloads that means a particular role will no longer exist. The legal definition of redundancy is:-

The employer has ceased, or intends to cease continuing the business, or
The requirements for employees to perform work of a specific type or to conduct it at the location in which they are employed have ceased or diminished.

You then have to consider the selection pool. Say its an accountants role and there is only one accountant then that is the 'pool'. If it is say a sales rep or admin role and there is more than one person carry out that role then you could have a number of people in the 'pool'. You then need to set fair selection criteria which is justifiable and objective . Often it is things such as length of service, experience, qualifications relating to the job, absence record (excluding maternity leave), disciplinary record. Be careful that it doesn't include anything to do with trade union activities, maternity leave, requesting flexible working etc.

Apply the criteria to everyone (possibly using a points system) and see who comes out bottom. You can't just say pick her because she is perceived to be less organised, unless you have taken disciplinary action against her for being unorganised and disciplinary is one of the criteria.

On top of that you have to follow statutory procedure if you are going to potentially dismiss someone. You have to write to anyone saying their job is at risk (everyone who's job is at risk), invite for a meeting, explain it all, explain criteria, consider other roles, then tell them decision and give right of appeal (and thats if its a redundancy situation in the first place!

You could be left open to a claim for unfair dismissal if you get it wrong.

Alternatively you could offer someone a compromise agreement to exit the business. They sign away all rights to make a claim of any kind against the company for £XXXX, all agreed by lawyers and end of story. However, the second you raise it with an employee, they could say that you have undermined the mutual trust ect of the contract of employment and resign and claim unfair/constructive dismissal.

To sum it up, be very very careful

chocolatekimmy · 13/03/2007 22:09

Didn't scare you with that did I?

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