The People Bulletin

The recent decision by telecoms giant BT to offer staff an up front annual sum of 25% of an annual salary in exchange for taking a year off is one of a number of initiatives some employers are findings as an alternative to mass compulsory redundancies.  Earlier this year, accountancy firm KPMG asked its 11,000 UK staff to switch to a four-day week or take a sabbatical from one to three months on reduced pay. 

Commenting in The Guardian on 11 July, Mike Emmott, employee relations adviser at the CIPD explained: ‘In the past, companies never thought about the negative effects of mass compulsory redundancies.  Now they realise if you want a happy, engaged workforce you don’t start by dismissing as many people as you can as soon as you can.’ 

The CIPD offers a useful guide on managing a workforce in a recession:  http://www.cipd.co.uk/subjects/emplaw/redundancy/_hwmngwrfrcs.htm 

Neasa MacErlean’s article in The Observer on 11 January 2009, although written with a view to advising individuals on what to do if faced with a pay cut, nevertheless provides a useful summary of employee rights regarding pay cuts. 

http://www.guardian.co.uk/money/2009/jan/11/pay-cut-employees