Posts tagged with ‘PAYE’

How long after I’ve fired someone can I reemploy them? Part 4

This query has opened-up a can of worms regarding the way you run your company. Involving elements of employee relations, recruitment and development, as a business owner one of your overriding concerns is likely to be cost.

Many costs could be hidden in the time individuals spend doing tasks which, ‘they’re not employed to do’. Probably offering added pressure to workers and managers alike as the aftermath of firing someone means more duties for everyone.

Then, there is the cost of recruitment, finding the right fit individual to join your team. If you used a recruitment consultant, their lowest fee is likely to be in the region of 10% of the first year’s salary. For an employee earning the minimum wage this is likely to work out at roughly £1300.

But it doesn’t stop there. Training the new team member, bringing them on board to your company is likely to take a couple of weeks. Their time to truly settle will be at the very least £500. There may be additional training courses they need to undertake their role. Someone is probably going to be responsible for taking the employee under their wing, training them, overseeing them, guiding and coaching them… so an additional £500 is a realistic starting point.

And this doesn’t take into account your time. How much is that worth? Only you can decide.

These costs still add up, bearing in mind the lowest cost of £2300 totted up so far is simply recruiting and training. Additional administration of adding someone to payroll / pension / other benefit schemes, hasn’t been counted.

Nor have the costs of stress and strain for those taking the burden of these changes. How do we ensure other team members don’t make up their mind to ‘jump ship’?

Lurking in the background is the old chestnut. The employee you’re replacing. If they’d worked for you for longer than 2 years’ and decide you’ve not followed legal guidelines, perhaps they have been unfairly treated, they have the right to go to Employment Tribunal. The cost of the awards a tribunal makes is ultimately down to the tribunal to decide, the compensation cap is currently £78,962, but there is no upper limit if the employee can prove discrimination. The cost of preparing for tribunal; employment lawyers, witnesses from within the organisation, your time – ultimately this doesn’t bear thinking about.

Can you budget for that loss to your business?

‘How long after I’ve fired someone, can I reemploy them?’ might make you realise there is a need to get some professional advice, sooner than later.

Spending a little time and money in polishing the way you work and seeking advice could solve the quandary. The knock-on effect of brushing the concept under the carpet, not really thinking about all the pieces of the jigsaw, could bring your company sky high costs financially and emotionally.