As with many businesses in the UK, travel agencies and operators are suffering from the economic downturn.
As a result, and in a bid to reduce overhead costs, many travel businesses are considering redundancies.
In the past, jobs were plentiful and it was relatively easy for an outgoing employee to find another role. That is no longer the case, and it is more important than ever that travel businesses comply with their legal obligations. A failure to do so could result in expensive legal bills and compensation payouts.
Process is the key
It is essential that a fair process is followed and documented. As a broad reminder you must:
- Establish that the situation at hand falls within the definition of redundancy. For example, do you have too many sales consultants?
- Consider a fair and objective process of selection if a number of employees undertake the same or similar work. Do you have less need for sales consultants generally, or perhaps just those responsible for one geographic region?
- Consult with affected employees at each stage of the process
- Amend your plans, if appropriate, following the issues raised during consultation
- Consider alternative roles for potentially redundant staff
- Always keep an open mind, and do not make any firm decisions until the process has been concluded
Hints and tips
In addition to general good practice, travel businesses should take the following issues into account:
- Documents: Keep a written record at each stage of the consultation process
- Bonuses: How will bonus or commission entitlements be affected by redundancy terminations? Will you make a pro-rata payment?
- Multiple sites: Take care when more than 20 staff are at risk, even where they are spread over more than one site. Take specialist advice if so
- Maternity leave: Women at risk of redundancy while on maternity leave have special protection and are entitled to be offered (rather than be considered for) alternative employment. A failure to do so will result in an automatic unfair dismissal, and probably also a finding of sex discrimination
- Communication: Ensure that the process to be followed and any redundancy package is clearly explained to the employee. Uncertainty adds considerably to the stress levels of at-risk employees
- Alternatives: Be proactive in your search for alternative roles, and include group companies in your search. Document your efforts in this respect
- Redundancy pay: How will this be calculated? Consider whether you will pay the legal minimum, or whether you will enhance the payment
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