What's Fair?

[SnapD]

My company has just lost all it's work

I only have enough contract work left for me & maybe DH

If I lay everyone off (5 people) then when work picks up speak to each one in turn (in the order they started working for me) to see if they want to come back is that fair?

Or is there a better way to do it

If they are employees, ensure that you follow the statutory 3 step dismissal procedure. You need to write to them to say the job is at risk and why, consult about business reasons and then invite them in and dismiss and give them the right of appeal.

If they are contractors, I assume you have a termination clause.

With regard to taking them back, in the interests of the company I would take back whoever is most suitable to get the work done and also consider reliability and previous service

What right of appeal do they have?

You legally have the right to appeal against any dismissal. You should specify the grounds for it.

If there is no longer the work then you have a justifiable business case to dismiss in the first place but you still have to offer the right to appeal.

Failure to comply with the 3 step process could render the dismissal as unfair - even if there is a genuine reason.

Are they employees? It will be a redundancy situation if it is so you have to show that you have consulted with them as well as following the process and pay them relevant redundancy pay if they qualify for it

Redundancy is for over 2 yrs isn't it?

Yes redundancy is over 2 years. Here is a link that will give you some useful information about both redundancy and fair dismissal: www.dti.gov.uk/employment/employment-legislation/employment-guidance/dismissal-redundancies/page22304.html

In their contract of employment it states

"The position is only available as long as there is work. If the work drops, you may be laid off (without pay or holiday pay). You would not be required to return to work if you find alternative employment, however must be informed as soon as alternate employment is secured."

So I write them a letter stating there isn't any work
Then tell them verbally there isn't any work & that they are laid off
Then confirm that in writing

Is that right? (all worked for less tham 2yrs - all Part-time)

Are there blank version of these letters so I can get some help - or do I have to make it up from the beginning

You say contract of employment so for this I assume they are employees and you are their employer.

The contract is therefore flawed, you can't override statutory entitlements by your own wording.

You can't say you won't pay them holiday - that will be in breach of the working time directive.

You can't say you won't pay them as they will at least be entitled to statutory notice period.

I can't see how you can enforce the clause about them having to tell you if other employment is secured - how are you going to manage that, and what business is it of yours if they do find another job.

Less than two years and working part time is irrelevant really as far as the procedure goes though for redundancy the 2 years is relevant for pay.

An employee can bring a claim to employment tribunal for unfair dismissal after 1 years service.

For the process, write a letter saying job is at risk and invite them in, then explain the situation and business grounds. Techinically you should then have some meaningful consultation - suggest a week or so to look at alternative options and if the job is definitely redundant, dismiss them in a meeting (write to them and tell them what it is about again) and give right of appeal. If they appeal (can't see that they would have grounds), someone else in the business to hear it and write with the outcome.

This is all about best practice and protecting the company from claims.

Suggest you learn some basic employment law if you are running a business and get some legal advice about writing contracts of employment!