Today the Keep Britain Working campaign published a survey revealing the steps employers and employees have taken to help save jobs – with more than half of all UK workers experiencing a pay cut, a reduction in hours or a loss of benefits since the recession began. Howes Percival LLP’s employment law expert Tom Sharpe commented on the survey’s findings:

“This survey just goes to demonstrate how willing both employees and employers are in the current climate to consider alternatives to redundancy. It reflects the redundancy and restructuring exercises I have conducted recently, in which flexible alternatives have been mooted and carefully considered. These have included removing bonuses and benefits, reductions in pay and the duration of the working week. Sadly, these measures do not work in every situation, but they can in many and if they avoid the need for redundancies that’s good news for everyone - employees keep their jobs and employers keep trained and experienced staff, meaning they not only avoid redundancy costs, but also recruitment costs when the economy eventually improves.

“Usually these flexible arrangements are intended to be temporary - a means to overcome the current economic climate. Again, this works well for both sides. Employees have the knowledge that they will return to normal hours, pay, etc when things pick-up and employers gain the certainty that they won’t be left with a workforce with ineffective working hours. Of course, there is nothing to stop the parties agreeing a permanent contractual variation, but both sides should consider carefully the consequences of this.”

Tom has drawn-up the following brief guidance points for employers and employees considering flexible working arrangements as an alternative to redundancy:

For employers
• Consider all options carefully - you should already have considered alternatives as part of a fair redundancy consultation process, but do not discount fresh ideas put to you by staff.

• Ensure you document any contractual variation carefully, so as to avoid disagreement later down the line.

• Consider how the alternative working arrangement will work in practice. What if there is a temporary upsurge in work? How will you dictate which staff will return to full working hours to cope with the demand? If you select certain staff over others, without clear justification for doing so, you could be at risk of discrimination claims.

• Ensure you review the arrangement regularly and act as necessary upon the findings of your review.

For employees
• When suggesting a flexible working arrangement, try and demonstrate to your employer how it would work in practice.

• Consider putting forward a joint proposal, having discussed and agreed it with colleagues first - if an employer sees that staff are in agreement it will be far more likely to implement the proposal.

• Obtain clear details from your employer regarding the duration of the flexible working period, and the regularity of any reviews - you need to ensure that your flexibility is not taken advantage of.

• Ensure the agreed working pattern is documented to your satisfaction and that it accurately reflects what you have agreed to.


Tom Sharpe concluded, “The last thing to note is the potential impact of legislation concerning lay-off and short-time working. In certain circumstances, employees can qualify for statutory redundancy payments where their working time is significantly reduced, so it is sensible to take proper advice before embarking on any new flexible working arrangements.”