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Getting it right when times are tight

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Crackerjacks are working with the DOL to provide HR advice for employers to get through the current economic downturn.  The article below from the DOL provides some advice – particularly designed for SMEs in regard to the difficult task of making redundancies.

If you are facing the possibility of making staff redundant remember the “four R’s”

Reason: Redundancy is a situation where employment ends because the position filled by the employee is no longer required: It’s the position itself that is redundant and the decision to make a position redundant should have nothing to do with the particular employee who is filling that position. Be prepared to communicate why you are proposing a redundancy and be open to other commercially viable alternatives.

Refer: Refer to the employment agreement and any relevant organisational policies:  All employment agreements must contain a clause outlining employer obligations in a restructuring situation. Click here for examples
Employees who do certain catering, cleaning, caretaking, laundry or orderly work have special rules that apply to them. Click here for more information

Respond: Give staff an opportunity to comment on the proposal and respond to their comments: It’s a good idea to meet with the staff, provide information about the proposed arrangement and give them an opportunity to comment on the proposal. Keeping staff informed and responding to their concerns and comments in a timely manner is key to getting the process right.

Resolve: Try to resolve disputes quickly and effectively: Sometimes you may need an independent third party to help resolve disputes arising from a restructuring situation. If you and your staff are unable to resolve matters, the Department of Labour provides free mediation services. Read more about mediation services
More info on surviving tough times

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