There has been plenty of debate as to how much of the current crisis is reality and how much is a scared reaction to a problem which has been endlessly inflated by the media, by doom and gloom merchants and general speculation. No matter which side of the debate you’re on, the effects are real. With this in mind, it got me talking to someone about the laws governing redundancies. For those of you who don’t already know, the law requires employers who plan to make redundancies to give a certain amount of notice to their staff. This seems sensible enough in theory, but in practice it creates utter havoc. You see, the law prevents management from making effective moves in a timely fashion. On taking the unfortunate decision that redundancies are necessary, they must then wait for the allocated period before naming the people who will no longer be required. The larger the amount of staff involved in possible jobs cuts, the longer the notice period required. The respective notice periods allocated to the staff by their contracts and by other government regulations already give some protection – and this delay simply causes more problems all round. The workforce is faced with a daunting and nervous wait to find out if they will be part of the cull. Many people panic and start to look for a new job, in case they are made redundant. The better staff are offered other jobs first and often have to make a snap decision to accept these jobs or take a chance. Unsurprisingly, many who are faced with this choice will leave their current job. This, in turn, weakens the business. For entrepreneurs, the notice period is a frustrating delay to unfortunate but inevitable action. The business faces an exodus of the best staff and a time of low morale. For management, it is probably one of the worst jobs they have to do and this just makes it all the harder. If we are battening down the hatches in readiness for a full scale recession, these regulations may be in use more often than any of us would like – so perhaps it’s time they were reviewed for the good of all concerned. Related articles:Unemployment set to soarThe recession deepens: More jobs axedBNP controversy: what does it mean for you? Picture source
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.