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Consultations for Cost saving/redundancies at work

8 replies

happymum11 · 12/10/2007 19:47

Hi to everyone,
This week at work, we have been told that the company has started consultations for cost reductions, and it might mean that redundancies will happen.
Can somenone explain to me:
What consutlations means.
redundancies- interviews. Will the employer ask staff for volunaries redundancies?
If I am offer a redundancy package, can I not accept it?
Can the employer keep me in my posistion but, with less pay, or doing a lot more for the same pay?
I have never worked for a company that had one of theses situations, and I would like to know what can I expect to happen.

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flowerybeanbag · 12/10/2007 20:11

Hi happymum

Have a look at this which has lots of information about being made redundant.

Consultation usually means your employer talking to employees about what their proposals are, asking opinions and suggestions, which they may take on board or not, before proceeding with the planned redundancies.

That's a bit simplistic but the link will explain a bit better.

The employer may ask for volunteers but they don't have to.

If you are offered redundancy on a voluntary basis you don't have to accept it, but if there are no voluntary redundancies and you are made redundant you don't have a choice. Often there will be other/different jobs which you may be moved to instead, and if these are what's called 'suitable alternatives', then you have to take them. You can have a trial period first though.

Have a look at the link and come back with any questions, that's probably best, rather than me trying to explain everything!

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flowerybeanbag · 12/10/2007 20:14

Just to add, if they are consulting about cost reductions, they will be asking staff for suggestions on how costs can be cut, which may involve redundancies if no other suitable ways to cut enough costs are identified, so that's what consultation will mean in this instance I expect.

They may already have a proposal about how they intend to cut the costs.

I'm going to stop waffling now, have a read of the link and give us a shout if you have any questions.

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happymum11 · 12/10/2007 21:47

Hi Flowerybeanbag,
Thanks for your advice. I went to the link you offered and it has answered some questions, but, if my employer asks for Voluntary redundacies, I would probably put mine foward, but if I did, does my employer have to accept it? or can they not accept it, as it may be cheaper for them to make redundant someone else from my office? In my office, I am the longest staff in service. And if they did not accept my voluntary redundancy, then that would be like telling them, that I don't want to work for that company, and they might just wait until a leave.
And do they have to let the staff know how the redundancy pay would be calculated, before any staff would decide to either voluntary redundancy?
I am sorry if I am not making myself very clear, and I would understant if you just want to ignore my message, but I am not english, so sometimes it's difficult to explain myself in English.

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TheDuchess · 12/10/2007 21:55

How long have you worked there?

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Piffle · 12/10/2007 21:57

we had this back whoah back in the days pre kids

first off vols
then it was a criteria - most sick days, most time off, most disciplinary offences and newest starters
not in that order btw....

be aware govt standard redundancy is generally shiteous

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happymum11 · 12/10/2007 22:16

Hi everyone,
TheDuchess, I have been working for the company for almost 10 years,and in my department, a part from my boss, I am the longest serving staff.
The thing is that if they offered my a nice redundancy package I might take it, as this would mean take it a bet esasier until my DD2 starts full time school. I would still work, but I might do temping and Part time, so at least I am not so strict with the holidays I can take, even thought they were unpaid holiday. All my family live abroad, and and usually I can just visit them for 1 week ( my DD2 usually stay there for the summer holidays).

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flowerybeanbag · 13/10/2007 15:43

happymum glad the link was useful.

If your employer were to ask for voluntary redundancies, they would have to explain the pay you would get beforehand. It may be just the basic statutory redundancy pay (what you are entitled to by law), which is usually 1 weeks pay for each complete year of service, with a couple of age-related variations, which you will have seen on the link. The statutory 'week's pay' which you get by law is limited to no more than £310 though, so for anyone who normally earns more than that per week, they would only get £310 for each complete year of service. Your employer may decide to pay a bit more than the statutory minimum, but they would need to explain this to you first.

They may ask for volunteers for redundancy first. This may be in a situation where they don't want to force people to take redundancy, and would often be where they don't particularly mind who goes. This could be in a situation where, for example, there are 10 people doing the same job, but they will only need 7, so they ask for 3 volunteers. There are two problems with this - firstly more than 3 people may come forward, and secondly, by asking for volunteers, the employer might find that the people it would rather not lose come forward - most employers would rather choose I would think. If they ask for volunteers they should give you information about what will happen if too many people volunteer.


Instead of asking for voluntary redundancies, many employers prefer to have what are called 'forced redundancies'. People will then be selected for redundancy, based on criteria such as what jobs are needed/not needed, things like performance, attendance record, skills the person has, sometimes length of service as well.


There is a possibility they may just identify some jobs which are no longer needed, in which case those individuals will be made redundant. Or they may restructure jobs so that people need to apply for the new jobs, and might have an interview to see who gets the new jobs. The unsuccessful people would then be made redundant.

I think you need to wait and see what happens. At the moment redundancies are only a possibility. If it does come to that, your company will have to explain to everyone how the redundancies will work, who it will apply to and what package will be involved, so you would always know first.


Just something else to add, if you've been there 10 years, your redundancy package would be expensive, so your employer may well want to avoid making you redundant unless absolutely necessary.

Wait and see what happens and what information you get, then come back here if you would like any of it explained further.

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happymum11 · 13/10/2007 20:45

Thank you very much for your reply flowerybeanbag, it gives me some more information, and as you said, it's early days and will see what happens. Of course, this subject it's the one everyone talks about, and I think for some people that have more especialise jobs, or some staff in work permits, must be more worried.
Thank you once again for your advice and let's wait to see what happens.

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