Redundancy and pay rise
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Wullie1877
Posts: 2 Newbie
Has anyone ever heard of a company announcing redundancy and giving out payrises to selected staff at the same time?
Is this even legal??
Is this even legal??
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Comments
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Every year we get a pay rise and every year people are made redundant (60,000) since 2008, some are voluntary but many are not. Pay rise announced in Jan with effect from April, with amount based on performance.0
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Wullie1877 wrote: »Has anyone ever heard of a company announcing redundancy and giving out payrises to selected staff at the same time?
Is this even legal??
YES it's perfectly legal, why wouldn't it be??0 -
That!!!8217;s what I!!!8217;m asking!!!
So..... is it just me who finds this wrong?0 -
Perfectly legal.
Redundancy isn't just when a whole company is going out of business, it is actually more likely to be when one part of the business or a particular type of work is no longer going to be needed.
i.e. is there a business need for this position yes/no, can we accommodate the person fulfilling this position elsewhere in the business where a vacancy exists & their skills/experience can be used yes/no.
If the answer to both is no the result is likely to be redundancy.
If the business is continuing it is often a good time to consider making pay rises to certain key staff since redundancy anywhere in any business unsettles all staff and the pay rise can help retain those the company wish to keep and prevent a domino effect of staff leaving caused by poor morale.0 -
Perfectly legal.
Redundancy isn't just when a whole company is going out of business, it is actually more likely to be when one part of the business or a particular type of work is no longer going to be needed.
i.e. is there a business need for this position yes/no, can we accommodate the person fulfilling this position elsewhere in the business where a vacancy exists & their skills/experience can be used yes/no.
If the answer to both is no the result is likely to be redundancy.
If the business is continuing it is often a good time to consider making pay rises to certain key staff since redundancy anywhere in any business unsettles all staff and the pay rise can help retain those the company wish to keep and prevent a domino effect of staff leaving caused by poor morale.0 -
Wullie1877 wrote: »That!!!8217;s what I!!!8217;m asking!!!
So..... is it just me who finds this wrong?0 -
Much as I sympathise with those being made redundant, the business needs to survive and make a profit. Its owners need profit, otherwise the business is of no use to them. It's remaining workers need it to survive so that they have jobs. The business is paying a set of workers who it no longer needs, and who are a drain on profit, so it intends to make them redundant. At the same time they have workers they very much want to retain to make profit, so they are giving them pay rises. Not only legal, but quite sensible if you are an employer. Redundancies destabilise your entire workforce. It makes the people left behind nervous and they start jumping ship. What better way of saying we want to keep you and we value you? If more employers did the same thing, as employee's end up picking up more work and pressure, they'd have a more motivated workforce who aren't looking to jump ship. That's why local authorities are now struggling to recruit. Employees have had zero or minimal pay rises for nearly a decade now. They are having their terms cut. Pensions cut. And having more work piled on top of them as the workload increases at the same time that jobs are lost. They are demotivated and many are highly skilled. And voting with their feet. Contrary to some opinions, their skills sets are often in huge demand in the private sector, where they can get much better pay and conditions. Respecting the additional work and pressure in fairer pay rises might have meant that the sector didn't lose so many of its best staff to profit rather than public service.0
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It's like fire, ambulance & police services, people get promoted for the last year to boost their final pensions.0
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Wullie1877 wrote: »That!!!8217;s what I!!!8217;m asking!!!
So..... is it just me who finds this wrong?
Sorry but it’s you.
People are not made redundant - ROLEs are made redundant.
Why do you think it’s not possible to get ride of certain roles, but others can do well?
It might hel0 you t9 think of redundancy as role based.0
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