OPINION: Time for agencies to be creative and look for alternatives to redundancy

Statements of the obvious out of the way, the threat of redundancies remains very real for many, and those marketing, advertising or PR agencies not yet touched by this are fortunate.
Increasingly therefore, employers in these industries are following the example of accountancy or legal firms and looking at alternatives to redundancies to keep as many members of their workforce as possible.
Reduced working hours, reductions in pay or sabbaticals are all viable options and the key is to be creative (which should be a forte for those in advertising, PR and media firms).
These alternatives nevertheless raise employment law issues and employers in the creative industries need to know how to deal with this. Remember that employment contracts, as with all other contracts, are a matter of consent between the parties involved. Terms of employment can therefore be varied by consent and so employers should consult with employees to obtain their views. If the parties are able to agree a variation to the contract which will avoid redundancies, all well and good.
But if a variation cannot be agreed, employers may need to consider imposing one. The extent to which terms can be varied without employees' consent will itself vary depending on the terms of the contract, but the ability to impose a change as fundamental as the rate of pay would be rare in the extreme, despite market conditions. Such changes should not be imposed without a formal, individual consultation process.
If bigger agencies wish to impose significant changes to the contract of 20 or more employees at any one establishment within a 90- day period, strict collective consultation obligations arise. Failure to comply with these obligations can result in a penalty of up to 90 days' pay for each affected employee - the last thing an employer needs when cutting costs is paramount.

PHILIP HODGES is an associate in the employment team at law firm Halliwells