dismissing members of staff for bankrupt owner

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khal

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Post by khal » Fri May 16, 2008 9:04 pm
The owner of the business that I manage is made bankrupt but is currently going through the IVA proposal. We are definately over-staffed and there will be redundancy. What is the best way to dismiss some members of staff without alarming those we prefer to stay?
 
 

IRHR

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Post by IRHR » Fri May 16, 2008 10:10 pm
Managers often forget to consider the feelings of remaining staff in this situation so good for you in identifying that it is a concern. You will need to practice a fair and transparent process for redundancy selection first and foremost. I dont think you will ever fully remove the alarm and insecurity of the remaining staff but good communication will help reduce it and dont make false promises. Many organisations try and reduce concerns by saying that those remaining will be safe only to find that further cuts are needed, this causes mistrust.
 
 

MelanieGiles

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Post by MelanieGiles » Sat May 17, 2008 12:16 am
Hi khal and welcome to the forum

If you don't have your own HR department, I would recommend taking legal advice on this issue. Managing a redundancy programme, without giving the correct consultation can be a nightmare, and costly if you get it wrong. There are some good specialist HR firms I could recommend to you if you are interested.
Regards, Melanie Giles, Insolvency Practitioner
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