HR Report: Legal and Management Risks of Redundancies at ABC Ltd

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Added on  2023/01/10

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This report analyzes the legal and management risks associated with redundancies, focusing on a case study of ABC Ltd. It examines the potential legal liabilities the company faces when dismissing employees, particularly when redundancies are pursued. The report identifies risks such as unfair dismissal claims and negative publicity, offering advice to senior management on best practices for future redundancy exercises. It emphasizes the importance of following proper procedures, providing clear reasons for dismissals, and considering the impact on remaining employees. The report also suggests ways to mitigate legal risks and maintain a positive work environment, including providing warnings and compensation. The analysis covers the potential impact on the company's reputation, employee morale, and overall business performance, concluding with recommendations for a fair and legally sound approach to redundancies.
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HR Management
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INTRODUCTION
Dismissal from the business is the act in which company terminate the employees from
the job (O'Brien and Burrows., 2019). There are some reasons which can case the employees
to Fired they are having the proof and company is Dismissing the without any reason the
employees can rise their voice and take legal action.
This report will cover the case study of the ABC Ltd company and it will identify and
explain the regal risk company might be taking pursuing redundancies irrespective of the
four employees who have raised the concern about their job lose This will also include the
advise to the company legal risk that may emerge once redundancies has been confirmed and
This will also analyze the impact on the other employees as well. IN tend This report will
discuss the device which can be useful for the Senior management team when running any kind
of exercise in the Future.
Legal risk to company by pursuing redundancies of four employees
The redundancies can be often to e seen as the quick and easy way to exit people from
the business or reduce the cost and this is the most complex area of the employment low and
this can result in the costly unfair dismantle or the discrimination claims can be doe of the
company be they are not having the proper reason for the employees dismantle.
As per the case study of the ABC Ltd company have Fired the 4 employees who were
working in the company, and they have rights to rise their voice against the company if the
process of the Redundancy was unfair for them and without having the proper reason company
dismantle them from the job (Bergström and Arman., 2017). The companies 4 of the employees
rise their voice, and they can be able to take stricken action against the company. There are
some risk which can be face by the company if their Redundancy was illegal, and they throw
the four of the employees without having the proper proof and proper reason.
The For of the employees can go legally against the ABC Ltd company for fired them
from the jobs without having the proper noise or the working. Before Firing the employees
they have to give them a legal notice and tell them the problems which is faced by those
employees and if there is mistake and after getting the notice from the company they are dong
the same thing then company can fired there employees who are making the ABC Ltd
company's workplace environment and because if them other employees are also facing the
problem, This can be the case of discrimination at the workplace, or the misbehavior from the
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employees at the workplace can be a the reason to run the Redundancy at their workplace but
the employees does not get the notice from the company or any kind of the warning latter by
the company or the company is relating them with the other employees and any kind of
reason which is illegal and their is no mistake of those employees then they are having the
Rights to claim against the company as per the employment act of UK and the ABC Ltd
company have to pay them the compensation for their job loss, and they again have to give
their position back in the company (Di Ciccio and et,al., 2017). So the ABC Ltd company
should be aware of this risk because employees can go legally and it can decrease their
reputation in the market, and they will also loose the trust of their other employees and this will
also affect on their working efficiency and create fear among the employees from the
company that it also happen with them, so they will not able to trust the ABC Ltd company
and the superiors of the company who run this kind of practices at the workplace. The biggest
thing will be the demotivate the employees who are working in the ABC Ltd company, and
they will not able to get the su8ecss in their business and they will not able to grow their
business.
Risk to the company after the confirmation of the Redundancies and their impact on Other
employees
If the company will able to prove the and provide the proper reason for the Redundancies
the also they will face some problems and it will affect o their other employees who are
working on the company, and they be demo0tivated from the termination of the 4 employees.
The employees will will fear to work in the company and they will start searching for the new
company because they can feel that ABC Ltd company can fire them from the job wherever
they want and they will not have other option, so they will start searching for the new job.
Employees will pressure to work in the company because if those 4 employees get fired and it
get confirmed by the company then they will not able to trust the company it will create the
trust issue among the companies employees (Fatimah, Putra and Hasibuan., 2016). Negative
publicity – this can be happen with the ABC Ltd company when they will confirmed the
Redundancies of those four employees without giving the proper reason for their termination
so employees who are working in the company or the employees who get fired will do the
negative publicity in the market and this publicity can be spread in the market so quick and
they can get the negative review on the website of the company and 9it will affect on the
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candidates who were thinking to join the ABC Ltd company, and they wanted to work for this
company.
ABC Ltd company can have the risk if the company confirm the Redundancies but
those 4 employees who get terminated for the company have the strong proof that they get
fired from their job without having any strong reason or without having their mistake then it
will create a problem for the ABC Ltd company because they will go against the company, and
they can file the low suite on the company which will affect the companies' reputation in the
market and also they will not able to overcome from these problems because they will lose their
customers an company will also lose their trust among the employees as well (Fehrer,
Woratschek and Brodie., 2018).
I would like to suggest the ABC Ltd company to give those 4 employees a working if
they are doing anything wrong, and they are not following the companies discipline and if they
are doing the same thing with again at the workplace of the company then they have rights to
terminate them easily , they should communicate and discus about the misbehavior of those 4
employees to the whole staff, so they can understand what why they need to terminate those 4
employees. The company has the right to the redundancies if they are having the problems like
they are facing the financial problem or problems in the economy affecting their business etc
for example – recently there are many companies who have fired employees from the job
because the Corona virus is affecting their business, and they can not earn the profit and their
business get shut down (Friday, Ryan, Sridharan and Collins., 2018). Otherwise, ABC Ltd
company cannot terminate the employees after they become the permanent employees of the
company, so they should look for their employees because it can affect the other's mind and it
will create the fear in the employees mind so if they are doing the same activities at their
workplace then they should warn the employees and staff with the companies staff and find
some of the evidence then they can run this process without having any problems and their
will be no p problem if everyone is knowing the reason and problems which force the ABC
Ltd company to terminate the employees. They can terminate the employees for the reason
and they will able to recruit the employees for the company who can replace those 4 employees
and do their work better as compare to the employees who were working before in the
company.
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Advice to the Senior management for the Future practices like redundancies
Senior management of the ABC Ltd company like the leaders, managers and HR
manager of the company who look for the employees' motivation ad their welfare, so they can
give their best for the company and help the company to achieve the success in their business
(Jose., 2017). Te superiors of the company who monitor the management at the workplace
have all the responsibility which they should perform, and they have to motivate their
employees and provide them their right in the company because the employees are depended on
them if anything is wrong with them then the superiors have to look for it and communicate
with the employees ask them about the problems which they are facing at the workplace of the
ABC Ltd company, so they can be motivated, and they can trust their superiors and f will also
affect the companies performance in the market, and they able to take the competitive
advantages.
I Would like to suggest the senior management of the company about the precipices like
Dismissals of the employees should be performed after having the proper season for the
terminating the employees from the job, and they have to flow the proper step of the
redundancies . They have to find the sources or the evidence against the employees who are
ruining the discipline of the companies workplace and after finding those employees they have
to give them a proper notice that company can terminate them f they will continue the things
which us making the working environment of the ABC Ltd company bad, and they are having
the proper proof of their involvement in making the environment bad fro the company and
creating the conflict situation at the workplace of the ABC Ltd company. Seniors can also
take with them face to face and give them warning that they have to flow the companies
discipline and work according to the companies guidelines and why should be aware about
some of the rules and regulation which is getting affect from their activities at the workplace
(Mariani and et.al., 2018). After following this process f the employees are not still listening to
the company then company have the rights to terminate those employees and this is their right
because they have followed every step s this procedure But they also have to give the
compensation to the employees who will be fired because they will be unemployed, and they
will not able to earn the money, so they have to give some amount of the compensation, so they
can use it till they will not get the new job so they can be to support them self and get the
new job for themselves. This is the proper steps the superiors of the ABC Ltd company
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should follow and this will reduce the risk because they have done everything properly, and
they were having the strong reason to fire the employees who were making the environment of
the ABC Ltd company worse and some of the other employees also facing problems. If they
will follow the proper procedure at the workplace then the employees who get fired cannot file
the case against the ABC Ltd company because they have followed the proper process, and
they have full rights to terminate any of the employees who are making the workplace culture
of the company bad (Parreño., 2017).
CONCLSUION
As per the report covered the case study of the ABC Ltd company and it has been
identified and explain the regal risk company might be taking pursuing redundancies
irrespective of the four employees who have raised the concern about their job lose This
report also has been included advise to the company legal risk that may emerge once
redundancies has been confirmed and This report has been analyzed the impact on the other
employees as well. IN tend This report has been discussed the device which can be useful for
the Senior management team when running any kind of exercise in the Future.
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REFERANCES
Books and journal
O'Brien, M. and Burrows, S., 2019. Assessing the Effectiveness of Regional Policy Responses to
Mass Redundancies: The Case of the Illawarra Region, Australia. Economic Papers: A
journal of applied economics and policy,.38(2). pp.144-155.
Bergström, O. and Arman, R., 2017. Increasing commitment after downsizing: the role of
involvement and voluntary redundancies. Journal of Change Management.17(4). pp.297-
320.
Di Ciccio, C. and et,al., 2017. Resolving inconsistencies and redundancies in declarative process
models. Information Systems.64. pp.425-446.
Fatimah, Y. A., Putra, P. O. H. and Hasibuan, Z. A., 2016, October. E-business adoption and
application portfolio management in remanufacturing small and medium enterprises.
In 2016 International Conference on Informatics and Computing (ICIC) (pp. 349-354).
IEEE.
Fehrer, J. A., Woratschek, H. and Brodie, R. J., 2018. A systemic logic for platform business
models. Journal of Service Management.
Friday, D., Ryan, S., Sridharan, R. and Collins, D., 2018. Collaborative risk management: a
systematic literature review. International Journal of Physical Distribution & Logistics
Management.
Jose, J., 2017. Customer Payment Trend Analysis Based on Clustering for Predicting the
Financial Risk of Business Organizations. Anchor Academic Publishing.
Mariani, M. and et.al., 2018. Business intelligence and big data in hospitality and tourism: a
systematic literature review. International Journal of Contemporary Hospitality
Management.
Parreño, N., 2017. Improving Vendor Risk Management. Risk Management.64(7). p.8.
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