In a recent report, insurance company Liverpool Victoria, highlighted a sharp rise of 21% in calls to its legal helpline in the first quarter of 2009, of which an increasingly large percentage of these were relating to employment law and specifically redundancy issues. Upon further analysis LV= found of the redundancies programs being rolled out, one in three were illegal.
These new findings highlight a clear need for employers to tighten up on procedures and knowledge. Not only to treat their existing employees fairly but to protect their business. With the tribunals seeing a marked increase in frivolous claims, employers can not afford to put themselves at risk.
It has also been noted recently that pregnant workers are being targeted in redundancy programs and are successfully bringing claims to employment tribunal. A point to note, is that caution should be exercised as there is no qualifying period for claims on the ground of discrimination.
So, what can employers do should they find themselves considering a redundancy situation?
1. If you are unaware of the correct procedure and legislation: - ASK! It is much better to get help up front
2. Consult with Employees: - They could help in finding alternatives to redundancy and failure to consult could lead to the whole process being unfair in the eyes of the law. A recent court ruling ordered a Leeds Company to pay 90 days consultation to all redundant employees (approx 180 people) for failing to consult.
3. Should the redundancies go ahead then have a clear procedures that is applied to all staff
4. Look at the extra things you can do to give support: - CV workshops, debt management advise, resource rooms, these are very cheep to organise and not only assist your redundant employees but gives you added control over the procedure and can help with morale.
5. Finally, think of your remaining talent. Times like this obviously effect morale but also you require to get more from your remaining workforce to take your business forward and come out the other end.
If you would like more information on protecting yourself as an employer in a redundancy situation or a free HR health check, then please call our HR Services Team on 0845 838 6220 today. Click here for more information on our HR Services.