How to consider alternatives to redundancy during the coronavirus crisis

Authors: Lynda Macdonald and Susie Munro

Summary

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• Prioritise measures to take, depending on the severity and nature of the impact of the coronavirus (COVID-19) crisis on your business.
• Make use of any relevant government assistance for businesses affected by the coronavirus outbreak.
• Consider seeking agreement to a temporary reduction in the number of days/hours that staff work, or to a period of unpaid leave.
• Check if there is a contractual right to implement a lay-off or short-time working.
• Seek to agree a postponed start date for new recruits, or consider withdrawing job offers.
• Where the impact of coronavirus does not present an immediate threat of closure, consider measures to achieve longer-term efficiencies.
• Take care that any recruitment freeze does not place employees in an intolerable position regarding increased workload.
• Review whether or not any new vacancy can be filled by redeploying an existing member of staff, with appropriate retraining where necessary.
• Review overtime to see if it can be reduced or stopped altogether.
• Invite staff to volunteer for reduced hours or other types of flexible working.
• Consider reducing or stopping the use of temporary staff.
• Consider inviting employees to apply for sabbaticals on part or no pay.
• Take care that cuts in bonus payments do not amount to a breach of contract.
• Do not overlook possible ways of reducing overhead costs.
• Consider the high costs of making people redundant, including the "hidden costs".
• Appreciate that employers that cut staff numbers during an economic downturn may be ill equipped to take advantage of future opportunities.
• Make sure that you enter into constructive dialogue with your employees about any proposals for cost-cutting measures.