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LEGAL VIEW
WHEN DISASTER STRIKES
The UK’s largest specialist in temperature- controlled van conversions is rising from the ashes of a blaze that devastated its main manufacturing plant last summer.
CoolKit was back in operation just days after the fire ripped through the facility in Burnley in early July last year. Three months later it was moving into new premises in Blackburn and looking to post record sales.
A ‘swift and robust’ recovery plan has been at the heart of CoolKit’s response to the situation if found itself in.
Announcing the new home for the business, founder and chief executive Rupert Gatty said: “Only a few months ago we hadn’t a clue what was going to happen to the business.
“But within a few days, thanks to managing director Daniel Miller and the rest of our executive team implementing a swift and robust recovery plan, and our admin and manufacturing teams executing it with lots of energy and drive, we are now moving into a very exciting future.”
The business moved quickly to ensure it remained operational in the immediate aftermath of the fire, relocating production to its second unit in Burnley within days.
It also had in place “comprehensive insurance” which it used to ensure a return to full production as soon as was possible.
A key part of the plan was keeping staff secure and safe in their roles and ready to return to work as soon as they were needed.
CoolKit also worked to keep its customers and suppliers regularly updated on its progress and to inform them of any changes in requirements or potential impact.
The CoolKit story is one of resilience and recovery. Thankfully few businesses face the situation it found itself in but it is vital to be prepared in case disaster strikes.
Stephen Greenwood, partner at Lancashire
headquartered law firm Farleys, says: “It’s inevitable that unexpected events will occur and well-managed businesses prepare for these eventualities.
“A plan for the unexpected involves awareness of where the business stands on insurance, property liabilities, and contractual liabilities.”
Stuart Wright, consultant at Lancashire based Cube HR, says: “If the worst happens then it is crucial that you look after the people side of your business as well as the buildings and other physical assets.”
As part of that, securing employee information and records should be high on the list of priorities.
Stuart says: “Those records will contain a vast amount of sensitive confidential information and if you hold those records in paper format then in the event of fire, flood or other potential disaster they are at a high risk of being compromised which could then lead to a significant data breach.
“Data breaches are not only a reputational risk and a risk to the privacy of your employees but they are reportable to the Information Commissioner’s Office and could lead to legal action and fines against your company.
“The best thing to do is not to have paper records at all but to use an HR software system to store all of your employee data online. By using such a system your data is secure and business continuity in that respect is assured regardless of what happens.”
Technology can also be an important tool to ensure that the business keeps functioning in the event of an emergency.
By having appropriate systems in place to work remotely many organisations will be able to move at least their core functions and services online for a period of time.
Stuart says: “The pandemic taught us how to pivot and work in an agile manner so while a disaster would be terrible it may not be terminal.
“That said, in some industries remote working simply isn’t an option and, in those cases, HR needs to support the business and its employees through a difficult period.”
He adds: “If a business can quickly find new premises to at least work from on a temporary basis then the issues created by an emergency can be minimised. If that is not possible though then tough decisions may need to be made.
“HR and business leaders then need to look at the option of either laying staff off temporarily whilst alternatives are investigated or redundancies may result.
“It is therefore important to look at employment contracts because if yours don’t include a lay off clause then you will need to enter into consultation with staff, otherwise you may be liable to continue to pay them in full.”
A continuity emergency can also have a wider impact on the wellbeing of staff and business owners and that makes it vital that the business looks after everyone.
Stuart says that means keeping an eye out for signs of stress and anxiety and making sure the business communicates openly and honestly with staff so they know what is going on.
He adds: “A vacuum of communication just leads to rumours and uncertainty so even if the news isn’t great then still share it in a sensitive manner.
“If you have an employee assistance programme that offers support and counselling then make sure that staff have the relevant details so that they can access it and as a business owner also make sure that you don’t try to be everything to everyone, you need support as well.”
Disaster planning should not be all about physical assets, says Tarnia Elsworth, director and financial adviser at TP Financial Solutions, based in Heysham.
The loss of a key member of the team through
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