The Co-operative Bank has announced it is set to cut costs which are likely to impact on about 200 roles. Redundancies are expected to affect staff in Manchester and Stockport.
The company said it is reducing staff numbers in a bid to cut operating costs “given the impact of a prolonged lower for longer interest rate environment“.
It is being reported that a large number of redundancies are expected to be made by the end of March 2017 and that these will affect management and head office staff.
The Bank has said that the cuts are “focused on areas where processes can be simplified and streamlined further“. There appear to be no branch closures planned as part of the latest cost-saving efforts.
On 17th November 2016 the Bank consulted with colleagues on the proposals to make around 200 roles redundant and have stated that over the forthcoming weeks it will continue to consult with colleagues and trade unions on these proposals.
The announcement has understandably had an unsettling effect on employees of Co-op Bank as some are now left with an uncertain future at the company.
If you are an employee of the Co-operative Bank affected by this announcement or if you are an employee faced with the threat of redundancy it is crucial that you understand your legal position and the options available to you.
You should be aware of your entitlements, including notice pay and statutory redundancy pay which should be stated in your written contract of employment. If you are unsure you should obtain the relevant documentation detailing your entitlements in such situations and the correct company procedures. The company may also have a contractual redundancy policy entitling you to enhanced payments.
In cases like this, where the company proposes to make over 100 redundancies, collective consultation applies.
Your employer has a series of set processes that it must adhere to. They are bound by law to follow these procedures including regarding fair selection and consultation.
Understanding your legal position and options at an early stage may give you scope to protect your position at work or negotiating leverage on a redundancy package.
Farleys Employment Law and HR Solicitors
Farleys Solicitors LLP specialise in all areas of HR and employment law for all levels of employees.
If you require advice and assistance in relation to compulsory or voluntary redundancies; re-structures and re-organisations; variation of employment contracts; settlement (compromise) agreements and termination / severance packages please contact Farleys Employment Law & HR team on 0845 287 0939.