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i run a small business and 2 of the 8 staff are no surplus…

Customer Question
i run a small business...
i run a small business and 2 of the 8 staff are no surplus to requirements due to a drop in business and the fact that we have outsourced a lot of the work that they were involved in. Also 1 of them in particular has been repeatedly poor at his job and not completing tasks so in any event I would have been looking to dismiss him on performance and disciplinary grounds. Both employees have a standard contract which states we must give them 4 weeks notice if we wish to terminate the employment.
Can I simply give them notice based on this 4 week option?
Is the better route redundancy due to decrease in work in their departments?
Submitted: 8 years ago.Category: UK Employment Law
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Answered in 2 hours by:
6/24/2010
Solicitor: ClaireD, Solicitor replied 8 years ago
ClaireD
ClaireD, Solicitor
Category: UK Employment Law
Satisfied Customers: 3,090
Experience: BSC (hons). 14 years experience in legal field
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Customer reply replied 8 years ago
the one that has been particularly poor at his job of late has been employed 13 months. The other has been employed 2 years.
we basically cannot afford to keep the two of them on at present without risking the business going under.
I was going to offer reduced hours to both as alternative to redundancy. if i go for this option given that there is two of them would i need to follow any process or consultation or would meeting with manager and explanation of options and letter suffice
thanks
Solicitor: ClaireD, Solicitor replied 8 years ago

You would be best advised not to just give them notice of 4 weeks as they could both claim unfair dismissal. You can either sack them for their poor performance, or a better option would be to make them redundant, providing that you follow the correct selection procedure and best practice redundancy procedure. This ACAS guide is a good account of how to do this. http://www.acas.org.uk/CHttpHandler.ashx?id=877&p=0

 

If you do make them redundant, the person with 13 months service would only be entitled to their contractual notice or pay in lieu and the one with 2 years would be entitled to their contractual notice or pay in lieu as well as statutory redundancy payment.

 

I hope that helps.


Regards

 

Claire

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Customer reply replied 8 years ago
thanks Claire
ok so just so I am clear:
their line managers call them both into a meeting to explain the situation and provide the redundancy letter based on the terms above?

do they need written notification ahead of the meeting telling them its a potential redundancy situation as you would ahead of a disciplinary hearing? or is it ok to sit them down and explain the situation and provide them with redundancy notice letters?
Solicitor: ClaireD, Solicitor replied 8 years ago
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