Jaguar Land Rover loses 500 management positions

Jaguar Land Rover is cutting up to 500 managerial roles in the UK due to financial pressures caused by US trade tariffs.

The automaker reported a decline in sales for the three-month period ending in June. This was partly due to a suspension of exports to the US, and the winding down of older Jaguar models.

In addition to the existing 2.5% tax, Donald Trump, US President, imposed an additional 25% tax on UK imports.

The initial tariff led JLR to stop shipments to the US. It was reduced to 10% for up to 100,000 cars.

JLR announced that it would be launching a voluntary redundancy program. The cuts will not exceed 1,5% of its UK workforce.

The company said that it offers voluntary redundancy to eligible employees on a regular basis. This is “normal business practices”.

Around 30,000 people are employed by the company in a variety of UK sites, such as Solihull and Halewood. They manufacture models like the Range Rover SUV.

Daniel McAfee of Lawhive’s legal operations, reiterated the fact that voluntary redundancy falls under redundancy as defined by law.

He said that the main difference is in the person who initiates the procedure and the way in which the selection and agreement are carried out in practice.

“Voluntary Redundancy” occurs when an employer invites workers to leave in exchange for redundancy packages. In legal terms, it is still a dismissal, but one that was mutually agreed.

Employees can choose this option for many reasons, including nearing retirement or a desire to change careers. They may also do so because they find the package attractive. The employer is not required to accept all applications.

While the process may feel more consensual than before, the legal rights are still the same, including redundancy pay and notice, consultations, as well as the right to appeal in the event that the terms of the agreement are disputed.