Will there be a rise in redundancies over the winter?

Current predictions are forecasting a sharp rise in the number of planned redundancies in the UK. There are many factors that have contributed to this, including interest rates rises, the return to pre-pandemic work and levels, and the downturn in UK based work within professional services and banking.

In addition, many businesses have had to content with high wage growth, due to the need to offer salaries which are competitive as inflation rises. ONS stats show a 7.8% increase in the UK basic wage between April and June 2023.

How should you manage redundancies in your own business?
One of the most important aspects of managing any redundancy programme is sensitivity. Redundancy can have a big impact on not only the person affected, but also on their colleagues and teammates who remain in the business.

There are statutory processes in place when managing redundancy situations, which it is essential you follow.

Communication is essential, both in terms of communicating the reasons and need for the change, the selection processes that you have considered, and what the next steps will be in terms of implementation. It is important to remember that redundancy processes are about the role, not the person. By this, we mean that you need to make decisions based on what the organisation needs, what roles you need, what the workload is……but not on personal qualities or the individual in the role.

Redundancy Pay

Redundancy pay is based on a combination of length of service, age, and weekly pay. No redundancy pay is appliable for staff who have been employed for less than 2 years. On top of the statutory redundancy payment (which is tax free up to £30,000), staff are also eligible to receive any statutory holiday and notice pay, and expenses etc., which are subject to their normal pay and deductions.

Redundancy as a Last Resort

Before commencing or considering any redundancy programmes, it is important to fully explore any alternative options. This may include things such as redistributing work, reviewing working hours and contracts, and considering other options that might increase income or clients to the business.

How can we Support you?

We can work with you at all stages, right from reviewing options and looking at possibilities, through to managing the redundancy process with you.  We also deliver both virtual and in-person managers training sessions, where we upskill you about all aspects of managing redundancies within your own teams.