You are probably sick or scared of turning on the news and hearing about the ‘unprecedented times’ we’ve experienced and the cost of living crisis we are experiencing. It doesn’t look like there is hope of this will be improving any time soon as it looks like the UK is heading into a recession.
I wish I didn’t have to be the bearer of bad news, however, where there is a recession it tends to mean that cuts will be made. This doesn’t necessarily mean lay-offs or mass redundancies but it may mean hiring freezes and/or a freeze on any pay rises will come into force.
The aim of this article is to help you navigate these uncertain times and ensure that you are treated correctly as the law dictates.
- Speak with your employer
During this time, we hope that your employer will be open and discuss any worries you have about the recession, please note there may not be able to discuss certain matters with you. However, if you are worried and it is having an impact on your mental health you should raise this with your employer. You may also wish to put forward some of the below points we are going to discuss.
- How long have you been working for your current employer?
We know that 2 years is a big deal when it comes to being employed by a company or business, but why?
If you have been employed for less than 2 years’ service you are protected by employment rights including but not limited to:
- The right to claim unfair deduction of wages
- The right to claim discrimination
- The right to claim whistleblowing
If have been employed for over 2 years’ service it entitles you to enhanced employment rights including but not limited to:
- The right to claim unfair dismissal
- The right to a statutory redundancy payment.
The issue with being employed for less than 2 years’ it does put you at risk. The reality is, is that it is a lot easier to
- Overtime
Overtime is not usually a contractual entitlement and so it is usually easy to stop or reduce the amount of overtime on offer. However, if there is a contractual entitlement and your employers are attempting to stop or reduce overtime, you should seek advice, as your employer should seek consent and consult with you.
- Pay Freeze and Cuts
Pay Freeze
If your employer is looking to freeze pay rises, they can do this, unless your contract states you are entitled to a pay rise every year. This should apply to everyone, to ensure fairness, if it does not you may wish to speak with us about any potential discrimination you could be facing.
Pay Cuts
If employers are proposing pay cuts they must seek consent from you, you can either accept or decline the pay cut. If you decline the pay cut, the likely next steps is that your employer will commence a consultation process.
If you are unable to come to an agreement by the end of the consultation period, it may result in what is called “fire and rehire” where your employer will dismiss you and re-engage you on new terms. If you are going through this process with your employer you should seek advice, as if they get it wrong, you may have an employment tribunal case against them.
- Temporary Variation to your hours
Instead of imposing, short-time working your employer may ask you to consent to a reduction in hours, for example, if you work 5 days a week, they may ask you to work 4 days and so on.
As set out above, if you do not agree to the variation your employer will commence a consultation process and it may result in “fire and rehire” situation.
- Short-time working and lay-off
We have seen this clause reappear in contracts recently, this is as a of the pandemic, it allows employers to either ask you to work reduced hours or ask you not work.
- This must be set out in writing in your contract of employment.
- If it is not, your employer must request to vary your contract to include this clause.
The purpose of this is to help retain the workforce without having to make redundancies. However, when deciding who to place on short-time working or lay-off they must not discriminate against employers.
Unless set out in your contract or staff handbook, you will be entitled to ‘Guarantee Pay’ during lay-off or short-time working, the maximum you can get is £31 a day for 5 days in any 3 month period (maximum of £150).
If you have been laid off without pay or put on short-time and receive less than half a week’s pay for:
- 4 or more weeks in a row.
- 6 or more weeks in a 13-week period.
You can apply for redundancy and claim redundancy pay.
- Redundancy
The word no one wants to hear, but unfortunately one which will be a buzz word over the coming months. We have already seen Facebook announce that they will be making layoffs. This announcement came after, employees at Twitter were ‘mass fired’ with stir that they have failed to comply with their legal obligations.
If you have less than 2 years’ service, you are not entitled to statutory redundancy pay. Your employer does not need to follow the redundancy process, set out below, with you, as you do not have enhanced employment rights. However, if you believe you have been discriminated by your employment, you should seek advice.
If you have over 2 years’ service, your employer must follow a ‘redundancy process’, if they fail to follow this process, you will be able to bring a claim for unfair dismissal. Your employer should carry out the following:
- Redundancy pay
- Notice period
- Consultation with your employer
- Option to move into a different job
- Time off to find a new job
If you want to find out more about the obligations your employer owes to you, click here, to read more on redundancy obligations https://baterlaw.com/employee-guide-your-rights-when-facing-redundancy/
If you want more advice, please contact us on [email protected]