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Staffing costs are always one of the highest overheads in any business. If you feel that you need to reduce staff hours, then you need to take several things into account before doing so.

• It is not legal to simply cut employees hours of work.


• Reducing overall hours may result in staff opting for redundancy instead of fewer hours. Any staff aged 18 + or with 2 or more years service will be entitled to redundancy payments.


• You must have a consultation period where staff are given the option to consider the new hours on offer.

Should you decide that you do need to reduce hours then we recommend the following guidelines.

• Fill in the attached forms with your current hours structure for each part of the business and then the proposed hours structure for each part of the business. If you want to cut hours in one part of the business but increase them in another, you MUST ensure that those hours are offered to anyone who may lose hours.



• You must consult with staff about what you want to achieve, give each member a copy of the current and proposed structure and give them a set time period (e.g. a week) in which to come back to you with their views. (Sometimes staff organise themselves around the new structure).



• If there are any staff who cannot or will not fit in with the new structure and do not agree to reduce or change their hours, then their posts will have become redundant and they may be entitled to redundancy pay.



• Implement your new structure on the date proposed. If any staff are to be made redundant and you wish them to work their notice, then give notice of their redundancy at the earliest opportunity. If you wish to pay them in lieu of notice, you may ask them to continue until the new hours start or to finish straight away.

Restructuring and reduction of hours can be a risky procedure as far as employment law is concerned. This information is for guidance only and we strongly recommend you consult with us at the help line as you go through the procedure.