With the UK now in recession due to coronavirus, employers' minds may naturally focus on workforce planning.
While thoughts may turn to restructuring and redundancies, it is also important to be aware of other temporary or permanent options in order to preserve headcount, whilst also achieving greater business efficiency and cost savings.
Read more: What are my rights if I'm made redundant while on furlough?
Examples of alternatives to making compulsory redundancies include:
• offering voluntary redundancies and/or early retirement
• reducing staff working hours and/or pay
• agreeing to flexible working or unpaid leave
• limiting or stopping overtime
• implementing a recruitment freeze, and
• terminating temporary or contract worker contracts
Whilst the Coronavirus Job Retention Scheme remains in operation until the end of October 2020, there is also the possibility of furloughing staff, subject to eligibility requirements being met.
Read more: The coronavirus Job Retention Scheme - what do employers need to know?
What action is right for your organisation will depend on its specific circumstances. Some sectors of the UK economy have been affected to a greater or lesser extent, and this may continue to be the case for some time. Whatever your organisation's position, it's essential to engage with staff, focusing on what changes might be necessary, the business reasons for these, and to gauge staff response to any workforce planning proposal that is put forward.
Where changes are proposed to terms and conditions of employment, or where redundancies are proposed, formal consultation will be necessary before any workforce planning action is confirmed. A consultation process could take up to 45 days where there are 100 or more affected staff, or 30 days where there are between 20 and 99 affected staff. There is no minimum consultation period where there are fewer than 20 affected staff, but it is always important to engage in meaningful consultation which should not be rushed. Whatever the size of your organisation, early strategic workforce planning is essential.
- Michael Delaney is a partner at award-winning law firm VWV, which has offices in Clarendon Road, Watford
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