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Birmingham Post
Birmingham Post
Business
Hannah Baker

What businesses should do if making staff redundant

More than one in 10 employers in the South West are expected to make redundancies in the year ahead, according to a new survey.

The study, commissioned by workplace arbitration service Acas and carried out by YouGov, found businesses across the region could be forced to cut jobs in the next 12 months.

Mike Fenn, Acas area director for the South West, said global events, such as the Covid-19 pandemic, had thrown up "difficult challenges" for companies in the West of England.

“Our advice is that bosses should exhaust all possible alternatives to redundancies first, but if employers feel like they have no choice then they must follow the law in this area, or they could be subject to a costly legal process," he said.

"If an employer finds there are no other choices than to make redundancies, then there are strict rules on consulting staff that they must follow."

What businesses should do if making staff redundant

According to Acas, an employer must discuss any planned changes and consult with each employee who could be affected by job cuts, including staff who may not be losing their jobs but will be impacted.

By law, employers who wish to make 20 or more staff redundant over any three-month (90-day) period must consult a recognised trade union or elected employee representatives about the proposed changes

For 20-99 redundancies, consultation must start at least 30 days before the first dismissal can take effect, and for 100 or more redundancies, it has to start at least 45 days before. For fewer than 20 redundancies, there are no set time periods but the length of consultation must be "reasonable", Acas said.

If an employer does not meet consultation requirements, employees can take their employer to an employment tribunal. If successful, the employer may have to pay up to 90 days’ full pay for each affected employee. Someone can also make a claim of unfair dismissal to an employment tribunal on the grounds that they were not consulted, or the consultation was not meaningful.

"Employers should consider all possible options before considering redundancies as other solutions to their situation could be found through consultation with their staff, employee representatives and unions," a spokesperson for Acas added.

"Acas advisers have seen many examples of this joint working that’s produced creative alternatives to job losses. Such as part-time working, cuts to overtime, finding alternative roles and retraining."

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