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EXPLAINER: Guernsey's redundancy 'code of practice'

EXPLAINER: Guernsey's redundancy 'code of practice'

Saturday 27 July 2024

EXPLAINER: Guernsey's redundancy 'code of practice'

Saturday 27 July 2024


The continuing lack of any legal requirement for employers to offer redundancy payments to staff in Guernsey has been highlighted again.

When Carpetright went into administration earlier this week more than 1,000 people lost their jobs.

This included the loss of an unspecified number of retail and carpet fitting roles at Guernsey's Carpetright store at Admiral Park, when it closed for good on Monday evening. 

Tapi Carpets and Floors Limited had bought 56 of Carpetright's 273 sites - but this didn't include Guernsey or Jersey's.

Screenshot_2024-07-26_at_14.27.20.png

Pictured: Guernsey's Carpetright store closed for good last week. 

While support was offered to employees who had been made redundant, that help initially appeared to be limited to those staff based in the UK.

A statement from Carpetright's administrators said they were "working closely with the Redundancy Payments Service (RPS) to ensure that those affected receive their statutory entitlements as soon as possible".

Tapi also pledged to collaborate with other retailers "to ensure their job applications receive priority and funding workshops aimed at improving employability skills".

The administrators, PwC later told Express that: "Those affected by redundancy will be working with the relevant authorities to ensure people are supported and paid statutory payments that may be due to them as a result of the administration. 

"We are also working with Tapi and other organisations who can help with future employment."

For people employed at Guernsey's Carpetright store, the relevant authorities are the States of Guernsey and under local laws the 'statutory payments' due to them could mean they are entitled to nothing.

Wheadon House

Pictured: Anyone needing help with employment related matters can seek advice at Edward T Wheadon House.

Despite local laws meaning redundancy payments are not a statutory right, the relevant States departments have highlighted to Express that there is a statutory code of practice that employers must follow when making staff redundant.

Individual staff may also be due financial recompense depending on what is written into their contracts.

Stephen Glencross, Director of the Employment and Equal Opportunities Service (EEOS) urged employees to double check what their contracts say in these situations.

"There is no requirement in Guernsey law for an employer to make any redundancy payment although it is important to be aware of what payments may be due under the contract of employment," he said.

"However, there is a statutory code of practice that employers are expected to follow as part of the process of making staff redundant.

"This process includes a requirement to properly consult with affected employees in advance and to consider all reasonable alternatives that could prevent the need to terminate their employment."

redundancy

Pictured: Guernsey's code of practice for handling redundancy can be found HERE.

The local code of practice for handling redundancy was introduced in 2005 following the implementation of The Employment and Discrimination Tribunal (Guernsey) Ordinance.

Matters relating to redundancy locally are now handled by the Employment and Equal Opportunities Service, which also has oversight of matters relating to the newer anti discrimination laws which Guernsey is adopting in phases.

The redundancy code of practice confirms that people employed in their position for more than one year are entitled to some legal protection.

The protection afforded will vary depending on the terms of individual contracts.

The code offers advice on how redundancy should be handled by employers including if the employee is on a permanent contract, if more than one role is affected, or if the person at risk of redundancy is on maternity or adoption leave at the time the redundancy occurs.

redundancy

Pictured: The code of practice offers advice for different situations regarding redundancy.

Where redundancies are unavoidable, employers are expected to follow the code of practice.

This must include consultation periods with employees, introducing measures to avoid redundancies, and transparency over criteria for redundancy where it is unavoidable.

Employers are also legally obliged to meet any contractual obligations where redundancy pay is concerned.

The problem for some people will come where their contracts do not cover redundancy pay.

Mr Glencross said staff at the EEOS are able to offer support and advice where possible. 

"More information on the code of practice can be found on our website," advised Mr Glencross.

"We also offer free guidance to employers and employees on redundancy issues and other employment matters over the phone on (01481) 220026 or by email at enquiries@eeos.gg."

Job_search_image.jpg

Pictured: Job seekers can get help via the island's Job Centre.

Where redundancies or other job losses are unavoidable, many affected people will need to look for other employment opportunities straight away.

Ed Ashton, Director of Operations for Social Security and Inclusion in Guernsey, said job adverts and support can be found through the Job Centre.

"The Committee for Employment & Social Security was very sorry to learn about these redundancies, which will have been a shock to those involved who will now be looking for other work," he said.

"Help with finding work is available through the Job Centre, as is advice on how to access unemployment benefit and other financial support while people look for new employment.

"A list of vacancies can be found on our website at gov.gg/jobcentrevacancies and further support can be found at gov.gg/jobsupport. The Job Centre can also be contacted by phone on 222516 or by email at job.centre@gov.gg."

READ MORE...

Carpetright employees likely to get nothing

Carpetright closed

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