Q: I run a struggling business and need to cut costs. My employees work varied hours and if I was to reduce the hours each worked would I have to do it as a percentage of their hours worked or could I reduce all employees the same amount of hours?
Feb 01 2012
Answered by: Peter Done Ask a question
Unfortunately this situation isn’t quite as straightforward as you might think. You do not have the right to unilaterally reduce the hours your employees work whichever way you would look to implement it unless that right is expressly set out in the contract.
You talk about needing to reduce costs but doing so by reducing hours. If the amount of work has not reduced then how are you intending to complete it with your staff working fewer hours?
If the amount of work you need your employees to do has reduced then you are in a potential redundancy situation. In this situation you need to carry out consultation with your staff on how to achieve the saving you need and you can put forward a reduction in hours as a possible solution.
You need to start consultation with your staff about what you need to achieve and how that can be reached. Some employees may volunteer to drop their hours or take redundancy which will give you the saving without affecting anyone else. Your employees may also come up with other suggestions that will help you make the savings that you need.
If your contracts allow you to vary hours then you can do so although you should still consult with your staff to try and find a way that is as fair as you can make it. Your contracts may also give you other options, such as lay off or short time working, which may also be worth considering.
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