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Contemplating Redundancies as a Consequence of the Budget?
This article was published in the January/February 2025 edition of London Business Matters.
The October 2024 Budget has seen businesses forced to weigh up the prospect of increasing employee costs following a rise in national insurance tax and paying higher minimum wages. A survey of recruiters by KPMG and the Recruitment and Employment Confederation (REC), reports that vacancies in the market have fallen at their fastest pace in four years. Simultaneously, we have seen an increase in enquiries from employers considering reducing headcount.
Contemplating Redundancies
If your business is contemplating reducing staff, it is important to demonstrate a genuine redundancy situation that meets the legal definition. This is:
- the business is closing or has already closed;
- there is a change in the types or number of roles needed to do certain work; or
- there is a change in location.
Once a genuine redundancy is identified, it is important to ensure that a fair process is followed to avoid a claim for unfair dismissal. Even for those employees who do not have the requisite 2 years’ service to bring such a claim, employers want to avoid any allegation of discrimination where, for example, it is suggested that prejudicial selection criteria was used to select and employee for redundancy.
As a minimum, a fair process requires a ‘genuine and meaningful’ consultation take place with those employees identified as ‘at risk’ to discuss the reasons for the proposed redundancies, the skills and experience needed going forward and the criteria used for selection. The consultation should include ways in which redundancy might be avoided, such as applications from staff to work flexibly on job shares or on reduced hours or, reducing or prohibiting non-contractual overtime. If any alternative options are not viable, then it is important to explain why this is the case. Employers should consider if any ‘suitable alternative work’ is available, engaging and inviting suggestions from the ‘at risk’ employees.
While there is no strict timeframe within which consultations should be carried out (except in redundancies of 20 or more employees which is beyond the scope of this article), these should take place over a sufficient period to demonstrate a fair and meaningful process.
Redundancies are difficult for everyone involved and a fair and transparent process can avoid ambiguity for employees and the potential of legal claims for employers.
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When It’s Too Late To Choose: The Cost Of Not Having A Lasting Power Of Attorney
Planning for the future is a vital part of ensuring personal affairs are managed effectively if capacity is lost.
A Lasting Power of Attorney (LPA) is a legal document that allows an individual (the donor) to appoint a trusted individual (or individuals) to make decisions on their behalf should they become unable to do so.
Failing to put in place an LPA can lead to complex, time-consuming, and costly consequences.
Types of LPA
There are two types of LPA in England and Wales:
Property and Financial Affairs LPA
This covers decisions such as managing bank accounts, paying bills, and selling property.
Health and Welfare LPA
This relates to care needs, medical treatment, and life-sustaining decisions.
Both must be made whilst the donor has mental capacity and registered with the Office of the Public Guardian to be valid.
What does it mean to lose capacity?
Mental capacity refers to the ability to make a specific decision at the time the decision needs to be made. This includes understanding information relevant to decision making, retaining it long enough to weigh up options, and communicating a choice.
Capacity can be lost gradually, such as through dementia, or suddenly, due to a stroke or serious injury. Importantly, capacity can fluctuate, and it may be that an individual might lack capacity at a particular point in time but regain it later.
As well as time-specific, capacity is also decision-specific, and a person may lack the capacity to make one kind of decision, but retain capacity to make others.
Without the necessary capacity, you may be unable to manage your financial affairs, make decisions about your health and welfare, or even handle day-to-day matters.
Critically, once capacity is lost, it is too late to put an LPA in place.
What happens if you lose capacity without an LPA?
If you lose mental capacity and do not have an LPA in place, no one automatically has the legal authority to manage your property or finances, and only the healthcare professionals treating you will be able to make health or welfare decisions on your behalf, acting in what they believe to be your best interest. In this situation the Court of Protection must be involved, and someone (often a loved one) must apply for a deputyship order to act on your behalf. This process can be:
Lengthy
The application process typically takes 6-12 months, and potentially longer if contested or delayed. During this time, no one can legally manage your finances or make decisions, which can affect bill payments, care arrangements, or property sales.
Costly
Costs include application fees, legal fees, medical assessment costs, and ongoing annual fees for example. A deputyship is much more time consuming and costly compared to making an LPA.
Restrictive
A deputy’s powers, once granted, are limited, and they are subject to ongoing court oversight.
Stressful
Applying to the Court of Protection for a deputyship order is a process that can be slow, expensive, and emotionally taxing, especially if there is a disagreement over who should apply or how decisions should be made. The lack of clarity and legal authority can cause confusion, disputes among family members, and emotional distress at an already difficult time.
Why set up an LPA?
An LPA is a legal document that allows you to appoint one or more trusted individuals (your attorneys) to make decisions on your behalf if you lose capacity. Key benefits include:
Control
You choose who acts for you and you can set out clear instructions or preferences.
Speed and simplicity
Attorneys can either act immediately once the LPA is registered (Property and Financial Affairs LPA only), or once you’ve lost capacity.
Peace of mind
Having a valid LPA in place can avoid the cost, delay, and complexity of court proceedings.
Respect for your wishes
LPAs can be tailored to your wishes and ensures that future decisions made by your Attorneys reflect your values and preferences.
A vital safeguard for everyone
An LPA is a vital part of lifetime planning, just like a Will. Without it, your finances, health, and welfare decisions could fall into the hands of the Court rather than trusted individuals of your choosing.
To discuss your requirements and find out how we can help you, please get in touch.
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The Real Cost of Avoiding Difficult Conversations
This article was published in the May/June 2025 edition of London Business Matters.
In the evolving landscape of Employment Law, one of the most overlooked risk management tools remains having timely, honest and evidence-based conversations. Employers and their managers who shy away from addressing performance issues, interpersonal conflicts, or inappropriate behaviour may find themselves not only presiding over a dysfunctional workplace – but also facing costly employment tribunal claims.
At the heart of many legal disputes lies a missed opportunity: the chance to address an issue when it first emerged. Whether it’s concerns around an employee’s capability, conduct, or fit within a team, early intervention – when handled correctly – can defuse tension, provide clarity, and create a constructive path forward. Crucially, it can also demonstrate that an employer acted reasonably, a central test in many legal claims.
Delaying these conversations, often out of discomfort or fear of confrontation, can send the wrong message. Employees may feel blindsided by sudden disciplinary action or formal procedures, particularly if they were never made aware of concerns informally. This perceived unfairness can become the seed of future grievances, claims of discrimination, or unfair dismissal cases.
From a legal perspective, employers may be able to prove they have a fair reason for any formal legal action however, tribunals will also examine whether the employer followed a fair process, and the employee treated fairly and reasonably. Was there open communication? Was the employee given a chance to improve or respond? Early, documented conversations – rooted in professionalism rather than blame – can become vital evidence that the employer acted appropriately.
So why do managers avoid difficult conversations?
Having practised Law for over 25 years, I’ve supported countless businesses with costly tribunal claims many of which may have been avoided if managers had embraced having those initial difficult conversations.
Below are some of the most common reasons managers avoid difficult conversations:
- Fear of conflict or damaging relationships
- Not knowing where to start after they have let concerns slide
- Lack of time and capacity
- Fear of creating a legal claim
- A culture of blame creating a fear of finger pointing
Training managers in conversation frameworks, emotional intelligence techniques, and a working understanding of employment law principles is essential if they are to feel empowered to manage situations fairly and confidently. It is well worth the investment and may just save your business a costly tribunal claim further down the line.
If you would like to get in touch about our employment law offerings, please contact us via the form below.
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