As you know the law changed in April in respect of disciplinary and grievances.

So where does this leave redundancies?

Employers still have to follow established law when dealing with redundancies.  This means warning staff as to the possibility of redundancies, prior to the commencement of any action and dealing with selection on a fair basis, which in a larger organisation might mean agreeing pools of workers for selection. 

Where 20 or more employees are to be made redundant, the collective redundancy rules have to be followed.  Where a union is not recognised, this will mean arranging for the election of worker representatives.  There is a fixed consultation period, which is 30 days before the first dismissal can take effect.  Where 100 or more employees are to be made redundant, the fixed consultation period is 90 days. 

Employment Tribunals are now dealing with applications from employees who were made redundant last autumn when the first effects of the current economic crisis were being felt. 

When considering some of these complaints, there is a common theme, which is poor communication between employer and employee.  This does not just affect consultation, but also the failure of employers to inform employees that their jobs could be at risk.  Indeed in some cases employers seem to have indicated to their employees that jobs would be safe if staff accepted other measures such pay freezes or even reductions in pay.  Regrettably, these measures have not prevented redundancies occurring at a later stage.  

Consequently, employers need to communicate more, even on the smallest number of employees likely to be made redundant.  

Employers should also take advice at an early stage before embarking on a process of redundancy at all.  
Whilst writing, you may like to know that the Government have announced an increase in the National Minimum Wage from 1st October 2009. 

The adult rate for those 22 and over will rise by 7p to £5.80 an hour.

The rate for 18-21 year olds will increase by 6p to £4.83 per hour. 

The rate for 16 and 17 year olds will go up by 4p to £3.57 per hour. 

The Government has stated that nearly 1,000,000 people will benefit from this increase. 

The Government have also announced that from October 2010 the adult statutory minimum rate will apply to 21 year olds. 

Also from 1st October 2009 employers will be banned from using tips and service charges to top up staff pay to meet the National Minimum Wage.  For more information on these and other matters, you should contact the ELAS advice team on 0161 785 2000.