Choices, choices
Many employees often suspect they have been unfairly placed in the “departure lounge” when their company decides to restructure. Sometimes it is obvious there has been unfairness, or discrimination, in the process. On other occasions it’s much harder to prove even if suspected and the recent case of Dabson v David Cover & Sons Ltd doesn’t help employees much. On the other hand, employers will be relieved.
If your employment has just ended, not just for redundancy but for any reason, did you sign a compromise agreement? Perhaps you entered into a COT3 via ACAS to settle the dispute?
If you did there’s a good chance you will have signed up to a clause that says;
“You shall not at any time after the termination of your employment represent yourself as being interested in or employed by or in any way connected with [name of ex-employer]”
Tomorrow I am chairing the SBK Legal and Strategic Guide to Workforce Restructuring. It’s an all day conference with some very interesting speakers and covering a wide range of topics. Click here for details.
There will be presentations on how to vary contracts of employment, how to adjust pensions, a review of the government’s planned employment law review, how to maintain a positive working relationship with Unions, as well as a session on “Realising redundancy savings: abiding by the rules to avoid a later backlash”. The law on redundancy and procedure is particularly interesting to me and I will be especially looking forward to that session..
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At a time of economic stress, turndown, worry and cuts, the job market seems as much of a stressful place as anywhere.
Many over the last few months might have experienced the brunt of the economy’s tumble, which will have seeped into the employment market and taken its tolls on jobs, with redundancies being a frequent way of cutting company costs.
How much tax should employers deduct from termination payments? HMRC have announced a change to the way that lump sum termination payments have to be taxed by employers from this coming April.
As is well known, the first £30,000 of a compensation payment can be paid free of income tax and national insurance contributions, provided that it is paid as compensation for “loss of office” or employment. This commonly applies on redundancy, but can apply in other situations too.
The signs for Christmas are everywhere – cards in the shops, pubs seeking bookings for the office party and on television: Strictly Come Dancing and The Apprentice are a sure sign that we’re on the downward run to the annual festival of eating, drinking and making merry.
However, there’s another more unpleasant sign: redundancies may be on the up. At my firm we’ve seen an increase in clients coming in with compromise agreements. Every year companies like to get the dirty business over with before management and HR settle down to a slice of turkey and a mince pie. With rumours circulating about massive public-sector redundancies and the long-awaited Public Spending Review about to be announced next week, I don’t suppose this year will be much different.
I’m fond of cartoons, with Alex from the Daily Telegraph being my favourite. Banx in the FT is usually very droll as well. Steve Bell in The Guardian always used to be good but I don’t read The Grauniad anymore.
Financial Times 8th June 2010
I saw this in the FT yesterday. Could be very topical after the Budget.
Financial Times 9th June 2010
And from today’s paper – very true indeed.
Redundancy hasn’t been in the general news recently, although Eversheds, the national law firm did hit the headlines when it was successfully sued by a male employee it selected and made redundant. He alleged that he had been the victim of sex discrimination because he was not scored as well as a female colleague, in the same selection pool, who was on maternity leave at the time. She was scored more favourably because the firm feared doing anything else would have exposed them to a claim for sex discrimination from her. Eversheds are appealing the decision.
Ok, imagine the scenario. You’re told on Friday morning at 9.35 a.m to go to the 7th floor and meet Siobhan, your HR generalist. Only HR live on the 7th floor, not real people. You go into a meeting room with her and there is Charles, your line manager or maybe Fiona, who is really quite senior in HR but not usually seen during the hours of daylight. You’re handed a lengthy letter and told that your role is at risk of redundancy. What do you do?
Answer: try and get as much information out of Siobhan and Charles/Fiona as you can. What to ask?
BA has been in the news … again and, as usual, for all the wrong reasons. The company formerly claiming to be the world’s favourite airline has now asked 40,000 of its staff to not just take a pay cut but to work for nothing for a month to ensure the company’s survival. Now there’s an enticing offer … not.