The latest lockdown restrictions may force me to make some of my team redundant. What do I need to consider?
“The coronavirus pandemic has had a profound impact on the hair and beauty industry. Recent figures suggest that 4,578 hairdressers and salons have had to close their doors permanently since the pandemic began and for the 220,000 people which it employs, these are massively uncertain times.
When the previous lockdown was lifted salons in some areas saw a surge in bookings for hair and beauty appointments, yet for those in city centres or with a particular reliance on office worker footfall, that may not have been the same experience.
Add into the mix yet another national lockdown, and it has left many in the industry with some very difficult decisions.
If you are considering redundancy, it’s always worth consulting with a specialist employment solicitor who will advise you on the correct procedure and best practice.
This should involve proper consultation and complete transparency with those impacted and ensuring there is a fair basis for selection and consideration of any alternatives to redundancy.
You may have a sound basis for making staff redundant, especially during the present pandemic, but you can still find yourself facing claims for unfair dismissal if you have not followed a fair and reasonable process.
It is therefore essential to take advice to avoid costly claims in the long term.
If you dismiss an employee by reason of redundancy and they have at least two years’ service, then they are entitled to a statutory redundancy payment as a minimum.
The amount will depend three keys factors; the employee’s length of service, age and rate of pay.”
Philip Richardson, Partner and Head of employment law at Stephensons Solicitors
