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What other options are there to reduce employment costs?

If you don’t want to make redundancies, or if you can’t reduce employee resource, either in a particular department or across the workforce as a whole, then you need to think about alternatives to redundancy.

Equally, you may want to flex the resource you have available to you – without making drastic changes.  For example you may want to consider:

  • unpaid leave and sabbaticals
  • retraining and redeploying
  • forcing annual leave
  • flexible working
  • capability issues
  • lay off
  • short time working
  • reductions in salary
  • reductions in working hours
  • changing to shift working

Related FAQs

Can I force ways of reducing employment costs onto the workforce?

Some of these can be implemented by you, some need agreement or consultation and some depend on the wording of contracts. We’ll explain more in relation to each option.

Employer furlough schemes

Furlough means temporary leave of absence. There is nothing to stop an employer seeking to agree a temporary leave of absence – with or without pay – with its workforce.

This could not be forced on an employee without significant risk. Without agreement, this would need fair selection and consultation – more on that later.

Are the Courts still open and operating?

Yes, but the Courts have been temporarily restructured into three categories:

  1. Open courts (open for business including vital in person hearings)
  2. Staffed courts (for video and telephone hearings)
  3. Suspended courts (no hearings of any kind)

These changes have been effective from Monday 30 March 2020.

I work in construction. Can I still travel to work?

The CLC has also prepared a template letter that firms may adopt and issue to their workforce regarding travel to work. This can be accessed at download document.

The CLC’s current advice to those carrying out works on site is to carry out your own risk assessment on each site and determine whether or not it is safe to continue to work in accordance with the Public Health England instructions and the CLC Site Operating Procedures.  If it is not possible to work in accordance with the above they should not work.

I am dealing with an estate where the bank has sent me an indemnity to obtain the funds. Will the bank accept my signature without it being witnessed by my solicitor?

If you have obtained a Grant of Probate or Grant of Letters of Administration there should be no need to complete an indemnity, merely an account closure form. If however you have not yet obtained a Grant but the bank is willing to release funds then they will generally require an indemnity to be executed. Several banks and building societies including Barclays, Lloyds, HSBC and Santander have signed up to the British Banking Association’s voluntary Bereavement Principles, one of which is to support the bereaved according to their personal needs and work with you to resolve everything as quickly as possible.

If the indemnity requires a solicitor to act as a witness, you should contact the bank to see what they are willing to do to get around the problem, given the current situation.