News
Redundancies
Fri 14th Nov 2008
The Chartered institute of Personnel and Development (CIPD) reported a 28% increase in calls last month to it’s legal helpline regarding laying off employees.
Of the 2,000 calls, over 300 were regarding redundancies, doubling last years figure.
‘Organisations that need to cut costs should first look to introduce pay freezes and/or reductions in hours in order to preserve jobs. If job cuts are required this should be brought about through a combination of lower recruitment and natural staff turnover. If there must be redundancies, ensure that as few as possible are compulsory and that decisions about which staff are to be made redundant are based on individual employee performance rather than arbitrary criteria, such as age, and communicated to staff in a clear and sensitive manner. If affordable, help with job search should be provided to staff before their redundancy occurs.’
John Pilpott, Chief Economist CIPD