Instead you can look to retrain staff and move them to a more urgent position, or even see if existing staff can share an entirely new role between them. Those who have been at the company for less than two years are not entitled to any payment. For three years it becomes three weeks, up to a maximum of 12 weeks notice. If performance is an issue for example, then you need to be able to point to regular staff appraisals.

Keeping it Legal

When you have selected the employees that you are considering making redundant, you need to inform them of what is going on.

If none of these are possible, then its time to look into the redundancy procedure, and you will want to get legal advice before continuing. As you can see, its cleaner and better for morale, but you lose a lot of control over whose employment contracts you cancel. You also need to include commission China pump motors Manufacturers if its paid regularly. The last thing a company with the financial concerns that prompt a redundancy (and the morale drop from carrying one out) needs is a costly tribunal.

You need to be able to justify these criteria with reference to business documents. They both have their own advantages and disadvantages:

Voluntary Redundancy

If you actually ask for staff to volunteer, you can avoid much of the upset that compulsory redundancies cause and there are fewer steps to ensure you are legal with your staff cuts.

In order to work out the amount owed to someone being made redundant, you need to check your business documents to ascertain how long they have been at the business, their age and their weekly pay. It will not include overtime, unless that was both compulsory and regular.

Any Alternatives?

As redundancy is such a big deal (legally, for the company, the remaining staff and those let go), it may first be worth considering if there are any alternatives that can be considered. You will find that the majority of employees would be happier to take a small pay cut than to lose their employment contract altogether. Although many may feel guilty for cancelling employment contracts with the job market so fragile, the truth is that its often the safest thing to do both for you and your staff in the long run. It is the gross pay amount, before tax and national insurance contributions are deducted. For those who have been there for two years it becomes two weeks. Yet with the credit crunch, it would be irresponsible for managers struggling with costs not to think about the possibility.
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This weekly pay is worked out from the wage of the employee at the time. If you are planning on going ahead with redundancies, then its best to check your employment contracts, and get a solicitor in to make sure that you are all above board.

Although this is an abridged guide to redundancy, it covers the basics that you need to know. If attendance and discipline are the reasons for redundancy then you need to ensure you have kept accurate records and that you are completely consistent across the board with all employees. If the earnings fluctuate from week to week, then you are required to check your business documents and work out the average from the 12 weeks leading up to the redundancy. Of course you can turn down the request for redundancy, but in many cases staff who volunteer will go on to resign anyway.