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With the environment throwing up a very depressing housing market and job losses contributing to the global financial crisis, outlook on the economy has become bleak with the decline of falling demands for domestic goods, showing clear warning signs of recession, and the inevitability of job losses and business closure. Facing redundancy is one of the biggest hit areas after debt, with diminishing prospect of being reemployed.
The climate is further compounded by the situation that has led to bear market, where share prices on the stock exchange have fallen alarmingly, given cause for even greater concern. Although some Struggling companies may resort to unscrupulous behavior, detracting from the normal procedure, to avoid the cost of paying out redundancy money, they may dismiss some workers for reason that is unclear.
Recession can hit firms hard with the probability of been taken into receivership, Leaving many areas of unemployment hemorrhaging with almost unstoppable solvency, the depressing prospect, will caused many companies to lay off a percentage of the work force, by redundancies and retirement.
With recession coming towards its peak, more than 50,000 people a month are losing their jobs, and not as many long term production vacancies are been created. However, the process for redundancies is governed by strict laws, in a format which describe circumstances which gives no other alternatives, how workers are chosen, compensation in lieu of notice periods and statutory pay.
Those facing the prospect of redundancies, need to get professional advice, possible a lawyer, to outlined legal matters, or a trade union representative to know their rights, and give a breakdown in the ensuing procedures, covering the process of notification, other implications, along with what the long term complications could be, outlining possible alternatives and the consequences of not complying with employment law.
We would all like to think, that companies would make redundancies their last resort, if all other options has failed, but those who have faced redundancy before, know only too well, the limited amount of effort companies will apply in a desperate bid to save some jobs, and facilitate cost cutting changes that are needed to maintain the status of the business.
Generally, an employer will need to reduce their work force in order to cope with high wage demands, lack of investment, cash shrinkage, limited credit facilities and a sluggish economy, the decision to protect the company from completely folding up, will be a paramount subject on the agenda of the management committee.
Redundancy is a system used by employers to dismiss workers whose service are no longer required, due to adverse effect brought on by the decline in production, the probability of redundancies accruing during a recession is high, because of the decline in contract orders, and unpaid debt. When making an employee redundant, employers should follow a fair and legal process in dismissing staff on the grounds of redundancies.
Individuals who face the prospect of redundancies, must also prepare themselves to face further difficulties during the recession, the situation will not be an isolated incident, confined to people's locality, but recession will make redundancies a more heighten precedence affecting the entire economy.
Individuals will have to console themselves with the awaken realisation, that they have not totally lost their career, only their temporary employment status, of which recession, was a major contributory element in dismissal, they can of course be positive and face the future, by looking for new opportunities, and enlisting on retraining programmes.
A very large percentage of people who become redundant, usually find suitable employment again in a relatively short span of time, However, in recession, their efforts will need to be more focus, self motivated, organised and thoroughly persistent, because the qualification and selection process will be more stringent, employers will be cautious not to waste money on new starters, who may not work out profitable in the interest of the company.
Facing redundancies during a recession requires bold confidence, and steely nerves to beat of the ravages of low esteem, and mount a challenging recovery in taking advantage of the diverse wind of ill fortune, they could seek re-education counselling, confidence assessment, career changes, location interests, possibly start up enterprises with low initial outlay, and take active interest in community projects, and voluntary services, which may possibly lead to a full time position.
Redundancies is normally brought on by adverse conditions relating to the demise in production output, in which a number of candidates will be short listed for possibly redundancies, pay awards will be given along with the surprise news, to make the firm more cost effective, redundancies will start with the last people that were contracted for employment, to be the first ones out the door, quickly followed by those who have been with the company a little longer, staff who have been with the company for a considerable length of time will of course get a larger pay out.
There may not be any easy solution to prevent redundancies from taking place, So facing redundancies in a recession, puts the pressure on individuals, to know the legalities of the law, dealing with employees and employers rights, in the likely event of employment contracts been terminated.
When notice of the redundancy is given by the employer, it includes reference to the employers themselves and the employee who becomes redundant at the relevant time, making schedule amendment dealing with industrial disputes by arbitration, Transitional eligible instruments containing provision for company to dismiss the service of their staff.
Statuary redundancy pay award will cover the employee who becomes redundant, and any other skilled employees who become redundant at the relevant time that the notices are given, casual workers may be included, but only if they have served with the company longer than one year, territory laws list the eligible instrument used by employers to award redundancy pay.
If you believe that you have been selected for redundancies, you should always first seek further legal advice, especially due to pregnancy or illness, information outlining redundancies, and all things relating to laws in the work place, can easily be obtain from human resource center, like conduct disciplinary, suspension and penalties, and should you wish to make a complaint, options for alternative termination may be considered.
