LEGAL


Post-lockdown legal issues


Over recent weeks there has been a huge amount of emphasis on dealing with the lockdown. As time marches on focus, it has started to shift towards the future. Katie Ash (pictured), Director and Head of Employment Law at Banner Jones Solicitors, discusses what businesses need to keep front of mind when making key decisions about the future:


Business owners and decision makers have had a huge job over recent weeks to try to secure the future of their business in very difficult circumstances. Essentially, many organisations


will have seen work dry up, or projects put on hold, because of Covid-19, and that work is only likely to pick up gradually once the lockdown is lifted. The revenue tap is unlikely to be


turned back on with immediate effect. It could be another six-to-12 months before things return to normal, whatever the new normal may be, meaning that existing overheads are unsustainable. Many businesses will be


considering branch closures, redundancies, and maybe even company-wide salary reductions or short-time working. We may even see a surge in


mergers, acquisitions, and business consolidations. This may all seem overwhelming, but it does not mean the process needs to be cumbersome or costly if employers and employees work together in the best interests of the business. Firstly, it’s worth carrying out a


comprehensive review of all employment contracts. They may already contain clauses staff have agreed to that will help ease the pressure of reopening, such as temporarily reducing hours or


60 business network June/July 2020


asking colleagues to work in a different location. Other potential savings could


include reducing or dispensing with overtime or discretionary benefits, moving employees to other roles, offering early retirement, or putting a freeze on recruitment. While much of this will be less


than ideal, it could help to steady the ship and allow you to make savings to help the business return to a sustainable position for the longer term.


‘If you are considering redundancies, ensure you have a justifiable reason for making a role redundant’


If redundancies do become


necessary, it’s important to remember the usual employment law rules apply, despite the unprecedented circumstances we find ourselves in. Staff are protected from unfair or


unjust dismissal by law. Employers which don’t carry out proper consultations could land themselves in hot water. If you are considering


redundancies, ensure you have a justifiable reason for making a role redundant.


You must make sure you don’t discriminate when choosing employees for redundancy. Fair reasons may include performance or an employee’s disciplinary record. It would be prudent to score


employees based on a range of criteria and note that some reasons are automatically unfair and shouldn’t be used. Once you have identified those


at risk, you’ll also want to ensure you calculate the cost of the redundancies to the business. Remember, while you may ultimately save on salaries, if an employee has been with you for two years or more, they will be entitled to a statutory redundancy payment in addition to their contractual or statutory notice. At this stage, you must meet


with employees if they are at risk of, or have been selected for, redundancy. If an individual is isolating and not able to meet in person, it does not stop them from taking part in this step of the process, and you must ensure that you look at alternative methods to hold the consultation, including using video call technology or even good old fashioned pen and paper. During the consultation process,


you may consider other alternatives with employees, such as offering a position in a different department (if


possible) or reducing hours of work. If you are making 20 or more


redundancies within a 90-day period, then you will also have to carry out what is known as collective consultation. This places more legal obligations on an employer to carry out certain steps during the redundancy process and it would be prudent to take advice to make sure you get it right as the penalty for getting it wrong could be up to 13 weeks’ actual pay per employee and a criminal conviction. The next step is agreeing a


leaving date, and to confirm this to your staff in writing, giving the correct notice period under contract or statute, with statutory notice being given as a minimum (this depends on each employee’s length of service). If an employee appeals, you


should invite them to attend a further meeting to hear the appeal and follow it up with a letter to confirm the outcome. Whatever your process looks like,


it is vital to document every stage. Fundamentally, redundancies are


always linked to cost savings, but for many businesses this has never been such an important issue or affected so many individuals. Getting the process right is key to ensuring you don’t fall foul of employment law and potentially cost your business more as a result.


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