Any plan must also have in mind what the future might look like
once the challenges have been overcome. Relying on redundancies as a quick solution to budget constraints, while appearing to give immediate and benefi cial relief, may not be the right solution for retention and utilisation of your best talent. Compulsory redundancies will also impact negatively on staff morale. Redundancies are not the only option and should be viewed
as a last resort. Alternatives to address immediate concerns could include restricting recruitment, pay freezes, a ban on overtime or short-time working, or layoff . A plan with long-term reach may consider the overhaul of the shift system, redeployment to other areas of the business or retraining. Only if the effi ciencies and optimisation cannot be achieved in other ways should redundancies by considered.
Mind the workforce Whatever route is taken, the workforce will come under scrutiny. Where there are challenges to be addressed, changes will follow. Where there are changes that impact upon the workforce, there will be legal compliance – obligations under contracts of employment, collective bargaining agreements, where applicable, and employ- ment laws – will have to be complied with. A strategic plan must recognise the business’s legal duties and
workers’ rights as the fi rst step to ensuring legal compliance. Of equal importance is ensuring that the plan sets out the consultative frame- work to be adopted, including identifying the key stakeholders who will need to be involved - aff ected employees, relevant employee representatives and any recognised trade unions. While the frame- work will be there to enable the successful delivery of the changes, it
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should also ensure that it recognises there is a legal duty to consult with aff ected employees on an individual basis and any collective consultation obligations. If 20 or more employees are aff ected, the collective consultation obligations may be triggered, depending on the proposal. A merger or a change in service provider may add a further layer with the information and consultation obligations under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE). Timing is critical when it comes to consultation. It needs to
be planned for and given a proper timetable so that the process is meaningful and legally compliant. Where there are collective consultation duties there are statutory minimum consultation periods, which must be adhered to. Consultation should never be left to the last minute - sanctions for failing to comply with legal duties can lead to costly litigation.
Maintaining resilience A failure to plan and have a strategy that makes these challenges a priority will inevitably weaken business resilience leading to operational disruption, fi nancial loss and legal risk. To remain resilient, businesses need to plan and prepare; any response to these challenges will then be from a position of strength. As the title says, Fail to plan... plan to fail.
For more information contact Helen Taylor at FG Solicitors on 0808 172 9322, email
info@fgsolicitors.com, or visit the website at
www.fgsolicitors.com
LOGISTICS & WAREHOUSING
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