Peter Etherington
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Employment Update for Small Businesses
January 2025

Dear Subscriber

Happy New Year!

There is not much to report in the world of HR as we start the year – all the recently announced legal changes are still some way off from being firmed up. But this is the time of year when many businesses plan and initiate change. Unfortunately some may decide they need to downsize, which can lead to redundancies, whereas others need to grow and recruitment becomes the focus. Both of which are the subjects for this month’s update.

Please contact me if you would like to find out a bit more about any of the subjects raised in this update or if you need any help or advice.

Please forward this email to any of your contacts who might find it of benefit.

Regards
Peter Etherington
Tel: 01664 668164

www.etherington.co.uk

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Peter Etherington
Downsizing?
How to manage redundancies in the workplace
The redundancy procedure is actually not too complex, but it does require some careful planning, and you should start that well ahead of any notices being served. It is a case of working backwards from the target date to ensure you have built in enough time to carry out a fair process. As a rule of thumb you should plan for a minimum of 2 weeks’ consultation* before notices are served.

Before starting consultation you will need to have put together a business case for the redundancies, identified the relevant pools of employees from which selection for redundancy will be made, and considered what selection criteria to use – that all takes time. So it is best to plan early, even if your plans change along the way.

Don’t forget that redundancy is a type of dismissal in law, so anyone who is made redundant has the right to claim unfair dismissal (if they have at least two years’ service). That is why it is important to have a clear business case, a fair process, including objective selection criteria, and enough time for meaningful consultation.

We will be able to support you with all of this, so please contact us if you are considering making redundancies.

A good starting point would be to read our guide and Q&As on redundancy which you will find here.

(* If you are planning to make 20 or people redundant you need to comply with collective consultation requirements which are more complex, with a consultation period of at least 30 days)

Growing?
Tips on Recruitment
If you need to increase your workforce, here are 5 tips you may wish to consider:

  1. Consider a restructure. It may be the case that you can work smarter if you review job roles and structure before taking on any new starters – it could be, for instance, that you concentrate the more skilled work in a few more highly qualified roles and take on less skilled, and less costly workers to pick up the extra work.
  2. Consider whether to promote internally or recruit externally. Growth can give you the opportunity to motivate your workers by creating chances for them to increase their skills and knowledge, and to be rewarded through promotions. But taking on new people may be the best thing to do if you need an injection of new skills and culture.
  3. Plan effectively. Before you advertise any roles you should put together comprehensive job descriptions and person specifications for the positions. The job description will set out the key responsibilities of the role and the person specification will set out the key attributes that any candidate will need to fulfil the position (e.g. qualifications, skills, experience, competence, etc.)
  4. Use a range of selection tools. Rather than just having a soft interview, consider structuring the selection process to focus on the person specification. That may include a structured interview, a written assessment, a practical test, a presentation, etc.
  5. Plan and implement an effective induction process. Make sure the person you take on is given every opportunity to learn the ropes quickly and comprehensively, and that you can adequately assess them during the probationary period.
National Minimum and Living Wage
From 1st April 2025, the minimum wage bands are increasing and changing:

  • to £12.21 per hour (from £11.44) for workers aged 21 and over
  • to £10.00 per hour (from £8.60) for workers aged 18 to 20
  • to £7.55 per hour (from £6.40) for workers aged 16 and 17; and for apprentices under 19 and those over 19 in their first year*

*N.B. Apprentices over 19 and who have completed at least one year are entitled to the appropriate rate for their age.

www.etherington.co.uk