‘It is always worth
taking a bit of advice
on whether the
redundancy is “fair”’
REDUNDANCY redundant. So VR is a necessary but often Lewis and her firm to deal with many more
On the brink of the credit crunch, expensive way to deal with staffing problems, cases of redundancy, with declining pay-offs.
unemployment levels are rising. The latest as it is common practice for employers to ‘I have also noted less generous compromise
job count showed 164,000 people were offer higher redundancy payments as an agreement terms being offered to employees’,
made redundant over the summer of 2008 incentive for staff to leave. she says. ‘Employers are more confident
in the highest three-month increase since Many redundancy agreements support that they will be able to show that a genuine
John Major’s slump. The total now stands at the employers’ right to decide on who should redundancy situation exists.’
1.79million, and is predicted to increase two- be allowed VR and who should not, so as to
fold by 2010. avoid disparity in the remaining workforce. What next?
‘That is fine if the employee concerned If you are one of the many suddenly out in the
Voluntary redundancy has specific, unique skills which are key to cold with no job, there are a few steps you
Many companies, including Wedgwood, the business,’ says Lewis. ‘However, if it is can take. ‘It is always worth taking a bit of
Virgin Media and Yell, are offering staff simply that the employer happens to like that advice on whether the redundancy is “fair”, or
voluntary redundancy (VR). If there is a pool particular member of staff, an employee who whether there is scope to argue for a higher
of 15 employees doing the same work, and is subsequently dismissed on compulsory payment in return for a waiver of claims,’ says
the employer needs to lose five of them, VR terms may try to argue that their dismissal Lewis. ‘Trust your gut instincts – if something
can be a very useful tool at an early stage in was unfair’. If your company is offering VR feels a bit fishy (for example, why were you
consultations. packages and you apply, there is no certainty selected for redundancy as opposed to your
Employment lawyer, Rachel Lewis from you will be approved, which could affect future male colleague who doesn’t have childcare
pjh Law, a solicitors specialising exclusively career prospects. Or if you refuse VR and are responsibilities?) then there may well be
in employment law (pjhlaw.co.uk) says, then made to leave, it will be your pocket that scope to challenge it.’
‘Redundancy is a potentially “fair” reason for suffers, and there is nothing more you can do. But stay realistic, we are going through a
dismissal in law, provided that a) a genuine time of change in business. ‘Hopefully even
redundancy situation exists and b) a full Your rights though you’ve had a setback, you’ll be able to
procedure is followed by the employer in ‘Employees are entitled to a statutory make a change that will ultimately help create
effecting the dismissal.’ This means employers redundancy payment assessed against a a more positive future’ says Cassani. ‘But it’s
are expected to take a variety of steps to try formula based on age and length of service,’ mostly about hanging in there, don’t lose faith
and avoid compulsory redundancies – and if says Lewis. Your company will work this out, and stay positive, but be much more flexible
they fail to do so, they may face successful but seek professional help if you disagree about what you’re prepared to do, because
unfair dismissal claims from those made with their sums. The credit crunch has meant you’re not alone’.
TODAY’S BUSINESS WOMAN 45
T'sBW11 Career moves 2.indd 45 1/12/08 6:18:48 pm
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