HCS Business Matters
01 December 2009
How to Re-organise your Business in Tough Times?
In the current challenging economic climate, there are many reasons why businesses might find it beneficial to re-organise or streamline their workforce. Implementing one or more of the initiatives detailed below may help you realise cost savings, without having to make compulsory redundancies.
• Recruitment freeze
• Reducing overtime
• Review of contracted & sub-contracted work
• Review of engagement of agency staff
• Short-time working
• Lay off
• Unpaid leave
• Secondment
• Sabbatical
• Redeployment to other departments, premises or areas
• Compressed working week
• Reducing remuneration packages/working hours
• Mandatory annual leave
• Pension contribution holiday
• Temporary facility shutdowns
If you are considering re-organising or streamlining your workforce, HCS highlights some of the key areas you’ll need to consider, before making any changes:-:
• Ensure there is a real business need to justify any proposed changes.
• Ensure you discuss and agree any changes with those affected employees.
• Carry out genuine and meaningful consultation with the affected employees, before imposing
changes.
• There may be an obligation to collectively consult about the proposals – failure to do so may give rise
to a liability for protective award of up to 90 days pay, per affected employee.
• Ensure you have prepared any required documents which will guide you through the process.
• Where changes are being made to terms and conditions, think about ways in which they can be
implemented with as little inconvenience to employees as possible.
• If employment is being terminated, consider whether employees will work their notice, be placed on
garden leave, or paid in lieu of notice. of many factors, including the need for work to be done,
possible effect on the business during the notice period and the possibility of favourable tax
treatment of payment in lieu of notice.
14 January 2010, webeditor
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