Redundancies as firms adapt to survive Coronavirus

Posted on June 25, 2020

On reading The Business Desk article regarding mid-sized firms planning permanent job losses and business overhaul in order to survive COVID19, this unfortunately rings bells with Employment Solicitor, Susan Mayall, who predominantly assists small and medium sized businesses with their employment law issues.

The survey referred to in The Business Desk article details that Government support has played a key part in business survival and that sentiment is echoed by businesses Pearson Solicitors and Financial Advisers are dealing with, as the majority are taking advantage of the Government Coronavirus Job Retention Scheme. Many clients have described how the furlough leave grant was a ‘lifesaver’ at the start of lockdown.

Managing Employees post Lockdown

Now as lockdown is being lifted and businesses are looking at the amount of work coming in and at their workforce, many are finding that the work coming in has significantly diminished, resulting in a reduction in their income and the worry that they will not be able to pay the staffing costs once the support of the furlough scheme starts to diminish over the summer and then ends in October 2020.

Other clients are telling us that work that was being carried out by their entire workforce staff prior to the Coronavirus pandemic is now being adequately resourced by the staff who are not on furlough. This means that there is a likelihood that not all employees will be retained in the future.

Employers offering different terms

Our employment clients are thinking innovatively to avoid compulsory redundancies by offering employees sabbaticals, voluntary redundancies and looking at job shares between employees and reduced hours for staff who are willing to reduce the days/hours they work.

This is a very difficult and unprecedented situation for employers who are facing reduced work coming in and worries about not being able to pay their outgoings and the risk of redundancies going forward and our employers also feel for their employees who to are obviously worried about the future and their jobs.

Talk to experienced Employment Solicitors

Redundancies do not fall within the ACAS Disciplinary and Grievance Procedures but there is a very specific process and procedure to be gone through if a redundancy situation or a change to terms and conditions is required. Therefore before employers make changes to their workforce, it is essential that they take expert legal advice.

If you need advice on an employment issue we have an experienced Employment Team who handles all areas of employment law. To contact Susan Mayall, Head of Employment at Pearson Solicitors and Financial Advisers, please call on 0161 785 3500 or email enquiries@pearsonlegal.co.uk or complete an online enquiry form

Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.

This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.