We continue to get a lot of queries about putting staff on short time working and so we repeat advice published in an earlier issue.
One member recently began his query with the comment 'I assume there's no problem about putting one of the lads on a three day week'. Wrong!
The Golden rule here is that once you have agreement from your staff you can make any change you agree. It then becomes a new contract
Bear in mind that whether your staff have a written document or not (and they are legally entitled to a statement of their Terms of Employment) they all have a contract; the terms of which are defined (or implied) by what has been the normal practise.
If you want to change this (except in the case of redundancy) you will need their agreement.
Having said that if you want to hold existing staff but reduce their hours or rates of pay the prospect of the alternative of redundancy may be persuasive. Most workers would prefer some reduction in take home pay rather than lose their jobs altogether. But you will need their agreement.
Staff will already have some idea of the reality of business life and the sooner you talk to them about solutions the better. Let them consider the various options although the final decision will be yours.
When it comes to redundancy selection must be absolutely fair. Redundancy is not a way of getting rid of an unwanted staff member. Selection must be absolutely 'impersonal'. While the normal guiding principle is 'Last In First Out' (LIFO) this may not be the only way to do it.
But once you decide on a reduction in staff numbers you cannot select someone unless it can be justified on an objective basis. In general stick to LIFO. Take a case where the position you want to shed is a butcher, but there is a more junior non butcher (a driver, let's say).
The question of what constitutes a reasonable offer of alternative employment comes into play here. But you can protect yourself by at least offering the butcher the more junior job (at the appropriate rate of pay) and only if he refuses then make that position redundant. Obviously this wouldn't be relevant the other way round, where a butcher is more junior to a van driver.
Every case will have different facts and ACBI will advise you. There is a refund available for the redundancy payment.
As with everything discussed here whatever you agree should be recorded in writing. Never do anything in the heat of the moment.
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