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Warning: These articles were originally published as brief newspaper articles. The articles are not intended to be definitive advice on any particular set of circumstances. The authors and the firm of Nicholson Portnell accept no liability for any use of these articles. Specific legal advice should always be sought in all cases for any actual transactions or matters.
The Recession Bites - August 2009
Richard Nelson
Wages are the largest category of expenditure for virtually every business. When there is a downturn to business, all employers have to consider how they can cut that cost. There can be few employees who feel their job is free from any threat in a recession such as this.
So employers are anxious to make cost savings, and employees worry about the future of their job. A stressful situation for all concerned.
Redundancy procedures are far from straightforward and for employers it is all too easy to get things wrong. This can lead to claims for unfair dismissal and costly awards of compensation. The irony is that these can arise from the very measures intended to save money.
For the employee, the main concern is to ensure that they have not been unfairly selected for redundancy, while there is also the worry that one’s full entitlement to a redundancy payment may not have been met.
A further area, which continues to baffle and concern employers and employees alike, is the concept of a “Transfer of Undertaking”. This becomes increasingly important at a time when businesses can change ownership quite rapidly. Regulations are in place which are designed to protect the rights of employees in a transfer situation enabling them to enjoy the same terms and conditions with continuity of employment, as formerly.
The important message for both employers and employees is to take advice.
For further advice on these or any other employment law topics contact Richard Nelson, the Employment Law partner at Nicholson Portnell.
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