Redundancy

What are the variants?

Redundancy is a generic term. Many employers are now facing the prospect first-hand and it’s important that you have an understanding of the different types of redundancy for your employee base.

Firstly, can it be avoided?

When considering compulsory employee redundancy you must first consider if it can be avoided in any way. Methods of avoidance would include (but may not be limited to):

  • Seeking applicants for voluntary redundancy or early retirement
  • Seeking applications from existing staff to work more flexibly than they have previously
  • Laying off self-employed contractors, freelancers etc.
  • Not using casual labour
  • Restricting recruitment
  • Reducing or banning overtime
  • Filling vacancies elsewhere within the business with existing employees
  • Short-time working or temporary lay-offs

Voluntary redundancy:

As an employer you are able to offer your employees the chance to retire early. This can be incentivized, this process is often used as an alternative to voluntary redundancy.

The offer of Early Retirement must be made to the entire workforce; individuals must not be singled out due to their age or any other criteria.

You cannot mandate that an employee takes early retirement, it is the choice of said employee based on conditions offered by you as the employer.

Early Retirement:

The document is designed to provide greater transparency and clarity to the potential worker. It is also an integral part of the Government’s Good Work Plan, which sets out to standardize and reinforce worker’s rights. As an employer you must comply with the Good Work Plan, therefore the Key Information Document becomes mandatory.

Compulsory Redundancy:

This refers to forced redundancies within your business, most likely due to unavoidable or devastating financial hardship. When considering employee selection for compulsory redundancy you must adopt a fair, non-discriminatory process.

For more information regarding selection criteria please visit our related article: Redundancy – aspects to consider for Employers.

If your business is facing the decision of making employees redundant please ensure that you do your research, plan and prepare adequately. Additional information and resources can be found at: https://www.gov.uk/staff-redundant

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ERA AND UMBRELLA COMPANIES

Currently we know that there is talk of regulating umbrella companies and we understand why. The need to demonstrate compliance on a more frequent basis has affected many agencies and requesting additional certification from umbrella companies is now commonplace.

There are various companies who offer assessments and certifications and this gives agencies peace of mind that their contractors are being looked after and things are done correctly. Not all of these are affordable or accessible for smaller umbrella companies, but ERA Services has a fair and affordable pricing structure, and as long as you have 1 employee, you can opt for an ERA assessment.

ERA conducts a thorough, impartial assessment of all aspects of employment rights from minimum wage, holiday pay, modern slavery, and confirmation that all taxes are paid appropriately and on time for both your internal and umbrella workers, along with the additional responsibilities for your umbrella workers in line with AWR, the EAA Conduct Regulations and Key Information Documents.  The ERA audit is not just a case of ticking boxes and providing documents; in line with UKAS procedures, we look at the processes in place to ensure that a company is following them to be the best employer that they can be.

Holding an ERA certificate should reassure your agencies that you uphold the standards set for all employers in the UK and that your contractors are well taken care of.

ERA AND RECRUITMENT AGENCIES

We do recognise that in the temporary workforce sector that there has been much unrest over the last few years caused mainly by constant changes to taxation and employment law legislation and appreciate that recruitment agencies are under more and more pressure from end clients to evidence their compliance, and this includes their relationships with umbrella companies. The ERA assessment is tailored with additional questions that deal with your responsibilities as an employer of your internal staff, along with additional responsibilities for your temporary workers such as AWR day one and week 12 rights, EAA Conduct Regulations and the Key Information Document.

The ERA audit is not just a case of ticking boxes and providing documents; in line with UKAS procedures, we look at the processes in place to ensure that a company is following them to be the best employer that they can be.

Holding an ERA certificate should reassure your end clients that you uphold the standards set for all employers in the UK and that your contractors are well taken care of.

ERA AND EMPLOYERS

ERA conducts a thorough, impartial assessment of all aspects of employment rights from minimum wage, holiday pay, modern slavery, and confirmation that all taxes are paid appropriately and on time. The ERA audit is not just a case of ticking boxes and providing documents; in line with UKAS procedures, we look at the processes in place to ensure that a company is following them to be the best employer that they can be.