header-logo header-logo

03 July 2008 / Jeremy Nixon
Issue: 7328 / Categories: Features , Employment
printer mail-detail

Managing the credit crunch (1)

Employers should be wary of varying employees' terms and conditions to ward off the effects of the credit crunch, says Jeremy Nixon

Since the term “credit crunch” entered common use during the autumn of 2007, businesses have been assessing the effect which the economic slowdown is likely to have on their operations.

Inevitably, some companies (particularly those in the financial services sector), have undertaken downsizing exercises. In contrast, other organisations have sought to avoid redundancies. There are a number of reasons why organisations faced with changing economic circumstances may strive to avoid making people redundant. In addition to the reputational damage which laying people off can cause, a significant redundancy programme can be an extremely expensive exercise, especially if the workforce is entitled to enhanced severance terms.

One of the ways in which firms are avoiding redundancies is by refocusing their businesses. Some examples of this are estate agencies who are de-emphasising sales in favour of lettings and firms of accountants and lawyers who are concentrating less on mergers and acquisitions work

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Clyde & Co—Suriya Ashok

Clyde & Co—Suriya Ashok

Clyde Co strengthens energy transition and construction offering with hire of Suriya Ashok

Jurit—Nicole Gallop Mildon

Jurit—Nicole Gallop Mildon

Jurit appoints rare dual-qualified lawyer to expand Anglo-French private wealth expertise

NEWS
The Financial Reporting Council’s revised Audit Enforcement Procedure will alter the balance of power in corporate investigations
A telecoms operator may be able to hold over under the Landlord and Tenant Act 1954, yet still be unable to secure a renewal: an outcome described as a legal ‘paradox’

Safety fears do not automatically justify shutting an interested person out of a statutory will application

Consumer credit law is heading for its biggest shake-up in 50 years, with the Consumer Credit Act 1974 set to yield much of its detailed statutory machinery to FCA rules
The Supreme Court has settled a long-running dispute over part-time workers: unfavourable treatment need be a significant or effective cause, not the sole cause
back-to-top-scroll