Managing redundancies

Jan 2021

The COVID-19 pandemic is an unprecedented crisis that has had a devastating impact on economic, social, and health across the globe. It has resulted in business difficulties for many employers as well as put jobs and livelihoods at risk. Due to the on-going restrictions and the significant fall in demand, employers at some point, may have to consider the possibility of down-sizing and reduce the current workforce.

From the outset, Seychelles Chamber of Commerce and Industry (SCCI) has been working with our member companies across the country to assist them in managing the negative impact of the COVID-19 crisis. We have taken the leadership representing employers and the business community in Seychelles and have been engaging with the Government to explore innovative measures and solutions to ensure the health and sustainability of our businesses, our workforce, and our community. Our recent survey, the proposal for Recovery and Prosperity Plan, the “Employers Guide on Managing COVID-19” and the “Employers’ guide on working from home in response to the outbreak of COVID-19” are some of the advocacy works and tools developed. We are committed to continue our advocacy work and providing updated information, tools, guidance, and support to our member companies to stay agile and responsive in these uncertain times.

It has not been easy for businesses in the past few months; difficult decisions are being made each day in response to the changing situation. Letting go of workers, particularly in times of crisis, has never been an easy decision. We fully understand the challenge and financial difficulty face by many of our member companies. We however trust that our member employers will utilize all possible options to safeguard and interest and livelihood of the workers. This includes implementing flexible working arrangements and making use of the Government’s support schemes and assistance programmes. We continue to encourage and urge our member companies to utilize government support measures and explore all possible alternative options before resorting to termination of workers’ contract of employment.

This guide has been designed for our member companies that contemplate redundancy and termination of workers’ employment due to the impact of COVID-19. It identified a range of alternative options for consideration by businesses before resorting to termination of employment. In the event termination of workers’ contract of employment is inevitable, the guide identified the key issues and steps to be taken to ensure legal and contractual compliance and encourage best practices in line with the universal principles, so as to minimize the impact on workers and risk of legal disputes.

Should you have any queries, please do not hesitate to reach out to us via social media or through our contact page.