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Dear , Be prepared if considering redundancyWith economic growth haltering, many companies are looking at where they can cut costs to remain competitive in thiscurrent climate. One of the ways to achieve this is through redundancy. According to a recent CIPD survey 27% of employers are planning redundancies. Redundancy, which is just one form of exit management, is definitely one of the most challenging and dreaded managerial responsibilities. While it is not a pleasant experience for either party, by dealing with the redundancy in a fair, sensitive and consistent manner and offering support to employees who will be leaving and those staying, employers can minimise the potential upset and damage that this type of process can cause. This will help ensure that you reduce the effects of demoralisation, uncertainty and loss of productivity while maintaining your reputation and long-term prospects. One of the best ways to mitigate the concerns and anxieties suffered by all involved during this process is to be confident that the matter is being handled legally and professionally, with the benefit of prior experience to help with any ‘grey’ areas. The consequences of getting the process wrong are not just financial (if the redundancy is mishandled, an employer could find itself facing an unfair dismissal claim in which an employment tribunal can order compensation to the dismissed employee of up to £63,000), but other intangible consequences such as stressed and demotivated employees, amongst both those who are leaving as well as those who are staying, and not forgetting the negative publicity. The most common areas where companies go wrong when making a redundancy include: Failing to consult properly, either with the employee representatives (if they are required) or the individuals involved Deviating, to the detriment of the employee, from either the statutory process or any contractual redundancy policy in place Selecting employees for redundancy on discriminatory or unfair grounds Not acknowledging the correct timings e.g. starting consultation too late, giving insufficient time for consultation or inadequate contractual notice to departing employees Calculating the final payments incorrectly As with most complex exercises, a large part of the work in undertaking a redundancy process is in the planning and preparation beforehand. PES can advise on measures that may be an alternative to making employees redundant, the redundancy process itself, provide any template documents that might be required and brief managers beforehand on what they need to do to conduct the process legally and professionally. Our consultants can attend meetings and provide remote support as and when required during the process itself, to field any unexpected questions or challenges. We have a wealth of experience in dealing with termination payments and can help with any tax-related issues to all types of payment, including compromise agreements and payments in lieu of notice (PILON’s). If you would like any advice on this topic, please call Helen Crooks on 0845 4509110 or email Helen@pesconsulting.co.uk New partner for PESOur parent company, AIM-listed Wyatt Group Plc has acquired employee benefits consultancy TEBC. Based in Marlow, Buckinghamshire, TEBC Ltd and its six staff members will join forces with PES immediately. This is a very positive move for PES as there are clear synergies between both companies. We believe this will strengthen our offering across the country and provide an even wider span of offerings to our clients. Best wishes The PES Team Pensions salary sacrifice Make your employee benefits cost-effective .>Find out more To ensure you receive all your emails from PES, please addnews@pesconsulting.co.uk to your address book or contact list. To discover how PES can help you reduce risk, save money and improve employee performance, please get in touch today at:T 0845 450 9110E info@pesconsulting.co.ukwww.pesconsulting.co.ukFind out more at http://www.pesconsulting.co.uk