Employing people is an important step for many small businesses. It is often a huge decision as it adds additional costs and responsibilities to the business. In addition to the responsibility of paying the employee every month, having employees can also be particularly challenging when the company is struggling and needs to reduce its overheads. In that situation, it may no longer be able to afford an employee and as a result, will make that employee redundant.
The problem these businesses face is that in most countries when you make an employee redundant you are usually forced to pay them compensation, resulting in more expense for the business in bad times. Although this compensation certainly will help the employee, it can mean that the business itself will no longer survive.
- Have you ever been made redundant? If yes, did you receive compensation?
- Why do you think the law forces business to pay compensation to employees that are made redundant?
- What are the benefits of not forcing business to pay employees compensation?
- What do you think can be done to help small businesses who need to cut back on staff costs?
- Overall, do you think businesses should have to pay compensation when making employees redundant?