Employers Beware When Planning Redundancies


Figures published by the Tribunals Service this week revealed that 151,000 claims had been accepted in 2008-09, a decrease of 20% on the 2007-08.  However, employers should not be complacent.

The number of single claims accepted has actually jumped to 63,000 in 2008-09 - a rise of 15% on the year before.

Claims relating to redundancy are increasing dramatically, while equal pay claims are falling so with unemployment figures on the rise we could see claims increasing.

Employers are being warned to be very careful about making any form of discrimination when making employees redundant as compensation for discrimination is unlimited.
Age discrimination complaints are often a result of redundancy as employers are using age as part of their selection process.

Conciliation body Acas pointed out the rise in unfair dismissal, redundancy payments and wages cases followed the pattern of previous recessions.

Keith Mizon, Acas director of individual dispute resolution, said:

"Misunderstanding redundancy selection processes, which can be complex, or poorly communicating them, can leave people feeling unfairly treated.

We would encourage employers to contact us for advice on how to avoid or manage redundancies or movement to short time working properly before taking any action."

James Wilders, employment law partner at law firm Dickinson Dees, said:

"Many businesses could have avoided the additional cost and aggravation of such claims with more care in handling redundancy or disciplinary situations.

With costs ordered in just 0.25% of cases, there is little deterrent to dissuade employees from pursuing claims, whether weak or strong. With budgets tight, employers must tread extremely carefully in regarding how they treat their employees to ensure they do not expose themselves to arduous legal action, particularly at a time they can ill-afford it."

Planning Redundancies - How We Can Help

Hedley Basford management consultants have expert understanding of how to prevent redundancies from becoming a traumatic experience for you or your employees.

We can also provide a personal and confidential 'one to one' service so that after working with us your leavers will have an ideal CV, understand how to market themselves, and know how to manage job interviews successfully.

For more information including a free half hour consultation call us today on 01227 861133 or complete our contact form.

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