FIRMS making cutbacks in the current financial downturn need to follow Jersey’s employment law properly to avoid compensation costs, according to the head of employment law at Mourant du Feu & Jeune.

Helen Ruelle, pictured, said that companies had to be careful in complying with fair procedures in cases where redundancies or contract changes were concerned. She warned that businesses were not allowed to reduce overtime or discretionary payments, such as Christmas bonuses. She added that global concerns and pressures from head offices in the UK made redundancies an easy option for Island companies, but she warned that risks could be significant if procedures were not followed properly.

‘While time may be important for a business in terms of cutting its costs, generating a large compensation awards bill will not help its balance sheet,’ she said. ‘Employers need to step back and consider their procedures before embarking on them.’