Businesses of all shapes and sizes are cutting their costs. This week we have seen that Tesco is restructuring and are planning to remove the hot food service in their canteens, together with the removal of some fresh food counters in store and a reduction in head office staff. Up to 9,000 workers are at risk of redundancy. Also, the company that owns the Oddbins off-licence chain is preparing to appoint administrators in a move that puts hundreds of jobs at risk!
At Aspire we have extensive experience of planning your business restructure or redundancy and can offer comprehensive advice and support to turn what is a difficult and stressful task into a much more manageable process from start to finish.
What is important is that correct procedures (we like to call them the three ‘C’s’) are followed as we strongly believe…… Prevention is Better than Cure – The Three C’s
- Clear communication between management and staff to ease the pain and minimise operational disruption is vital.
- Full and meaningful consultation ensures you keep your staff engaged and prepares the way forward.
- Legal compliance is essential for employers to ensure they comply with the law to avoid tribunal claims and hefty fines.
A Reminder regarding Redundancy Packages over £30k and Employer’s National Insurance (NI)
There are also going to be changes to calculations of termination packages from 6 April 2019.
From this date, payments exceeding £30,000 will be subject to Class 1A Employer NI Contributions, but not Employee’s NI Contributions. Prior to this date, both were exempt from NI payments.
Employers already considering restructures and redundancies, might want to consider the timing of their plans before changes take place to keep costs down.
Aspire HR have extensive experience of managing organisational restructures, so get in touch if you would like more information on how we can help.
Recent HR news:
Auto-enrolment and National Minimum Wage set to increase in 2019
When it comes to contracts of employment, timing is everything!
Minden U.K. Limited use Aspire Business Partnership LLP. This firm provide Minden U.K. Ltd with practical and commercially sound advice in relation to all aspects of compliance, business strategy and conflict resolution. Original article can be found on Aspire’s website:
https://www.aspirepartnership.co.uk/News/3246/preparation-is-vital-for-restructures-and-redundancy