Trade is really slow after Christmas however I have spent several years building an excellent team and I want to avoid redundancies if at all possible-are there any alternatives?
Response -- Since Xmas, by far the most common query from readers has related to the recession and staff costs.
Redundancy costs can be expensive and once the skills have gone they are lost forever. Remember, you have invested heavily in the training and development of your staff and redundancy effectively writes off this investment. It might leave you poorly prepared when the economy comes out of recession.
Helpful hints -- Faced with the position where some or all of your staff might be redundant, staff are often much more receptive to ideas which, whilst uncomfortable, might be the lesser evil. Perhaps the changes might be for a three month period to give breathing space. If you can make the savings and save all your staff you might well be better placed when the recession begins to end.
At the end of the day none of the above might be sufficient to solve your problem. But, if nothing else, your staff will be clear that you have explored every avenue before making redundancies. Similarly, you will have valuable evidence if by any chance you are taken to tribunal.
If you make staff redundant they are entitled to contractual notice and, if they have 2 years service, the following payments:
Finally remember staff can still claim unfair dismissal and the max payment was increased by the govt on 1feb from 63 to 66 and a bit k see—printed email
I give my staff an annual Christmas bonus, the amount varies depending on profitability of the salon. An employee was on maternity leave from June 2009 but has returned and asked why she was excluded? What are her rights?
Staff are entitled to receive the benefits they would normally have received , when on maternity leave except their salary . I am assuming this “bonus” was not a contractual and it is debatable if it will be considered pay. Potentially the employee can look to claim sex discrimination as her maternity leave seems to be the reason for the non payment. I appreciate that she was not at work and you will feel that she hasn’t “contributed” to the profits but, on the information you provided I believe she has a strong case for the payment.