Redundancy Threat - Is this legal?

toby_puppy

My other half works for a flooring company.

The main outline of the story is that some redundancies have been made and some staff have been put on a three day week to reduce their hours because of the recent downturn in trade.

He has now had a letter (along with all the other employees) saying that if the downturn continues it could lead to more redundancies and that all overtime will stop with immediate effect.

Then the letter says if anyone has any ideas how to cut costs or wants their hours reduced or is interested in voluntary severance, then to let them know asap.

My question is, since this letter has been handed out - several times a week my other half as turned up at work only to find subcontractors loading up the vans and working for the company. Normally, the subcontractors are only called in over Christmas when it's manic - but surely this is contradictory to the letter?

Is he allowed to give out letters like this then start hiring subcontractors.

My other half works 40 hours per week and has worked there for 20 years.

We keep trying to phone ACAS but are in a queue for half an hour then have to leave for work. If anyone knows how I can email ACAS too, please let me know because the email button on the site doesn't seem quite right to me.

Thanks.

myrnahaz

I don't think this is a matter for ACAS. Look at it from another angle, your husband's employers have obviously been feeling the effects of the economic turndown and have been very fair in keeping their staff informed that things are grim, that they could get worse, but that provided everyone keeps working hard and helps make cutbacks/savings where possible, then maybe you'll all weather this financial crisis and jobs will be saved.
It also gives your husband the opportunity to make an educated decision as to whether to stay with his current employer or seek more stable work elsewhere if he believes the situation will worsen.
This doesn't necessarily mean that the company has no work at the moment, but this work might require manpower that is currently unavailable within the company due to ther recent redundancies, so they hire-in temporary staff to cover the shortfall.

bigstevex

unfortunately you might find the sub contractors work out cheaper than their own staff hence their use. I doubt there's a law against it though

hippey

If the subcontractors are doing excactly the same job on exactly the same hours as those who were made redundant then yes this is illegal, however it would be for those who were made redundant to claim.

As previously said, subcontractors are used where the work is intermittant and for a company this is a good choice for cutting costs in the short term, as it will reduce the wage bill should things go quiet.

If your OH is in a trades union I would contact them for advice / action, or approach the employer if they are resonable they may well explain the postion of the work at the moment.

Blah99

hippey wrote: »

If the subcontractors are doing excactly the same job on exactly the same hours as those who were made redundant then yes this is illegal, however it would be for those who were made redundant to claim..

How sure are you that is correct? It's definitely illegal to make someone redundant then employ another person back into the exact same role/remit. However I don't believe there is any law against making someone redundant then contracting work out to a separate subcontractor company/entity, as you are not employing them. It's exactly how outsourcing works - think of all the companies that made their UK IT helpdesks and call centres redundant, and outsourced the work. Nothing illegal there.

Tom_Jones

What's illegal in employing subcontractors ? you will find they are far cheaper than people on PAYE. The boss of the firm is trying to cut his costs which will result in a better profit margin, which may give the OP husband a few more weeks work than he may not get if subbbys weren't employed.

It is NOT illegal to employ a sub contractor and make someone on PAYE redundant, and if the OP husband has been there 20 years, stay where you are as you will have a half decent redundancy payout.

bigstevex

Yes its illegal to fill a post from which someone was made redundant (until a certain timescale has passed i think) but to employ sub contractors to do the work is probably legal as they are not actually employed by them, although i may be wrong!

Tom_Jones

bigstevex wrote: »

Yes its illegal to fill a post from which someone was made redundant (until a certain timescale has passed i think) but to employ sub contractors to do the work is probably legal as they are not actually employed by them, although i may be wrong!

Easy way around that, just change the Job Title, and Job Description

olly300

Tom_Jones wrote: »

Easy way around that, just change the Job Title, and Job Description

Employers do have to be careful.

If the place is unionised, the employee is in a union or the employee knows a lawyer then just changing the job description and title won't work.

I know several people who got pay outs for employers doing this in good times.

Oh and if the employee falls into a minority group in that workplace then the employer always settles out of tribunal as the payout on discrimination claims is legally limitless.

With call centres and IT help desks the turnover is normally high and lots of staff are temporary so they do not usually end up making lots of staff redundant when they do their outsourcing. Also the outsourcing companies tend to do a TUPE and get rid of staff via other methods i.e. moving the workplace 200 miles.