Warning to employers as UK-wide redundancies loom

Published: 18th August 2008

Employers planning redundancies should be on 'red alert' for falling foul of employment law a leading law firm is warning following surveys revealing that widespread job losses are looming.

North West law firm Mace & Jones said it is concerned by surveys by the Chartered Institute of Personnel and Development and KPMG. The CiPD research of 1,200 firms found that the number of employers planning redundancies increased from 22% to 27% between the second and third quarters of this year. This follows findings in a KPMG survey, of 200 senior executives from major companies, which found that more than half plan to lay off staff.

Mace & Jones employment law partner Phil Allen said the findings made sobering reading and urged employers to take a 'carefully planned' approach to redundancy.

"Employers can walk into a minefield of costly and time consuming problems if they mis-manage the redundancy process," he said. "The process needs to be properly planned with a legal adviser. A series of meetings needs to be held. Consideration should be given to full staff meetings and consulting with elected staff representatives, which is legally required for larger exercises. There must always be one to one meetings before written notice. Staff must be given the opportunity to respond to being placed at risk of redundancy and alternative ways in which they could keep their job should be discussed with them. Ultimately this is a highly sensitive process where it is easy to fall foul of the legislation. It will run far more smoothly with considerable preparation and effective legal advice."

Mr Allen further warned that badly handled job losses can be hugely damaging to staff morale and company productivity.

"It is important to communicate with the staff who are staying, to quell fears and concerns," he said. "Making redundancies is often necessary to maintain the profitability and efficiency of a business. In this way redundancies can make the firm better organised and better run. Therefore, rather than all being negative news, it is vital to give positive news to the staff who are staying, and explain what the future growth plans of the business are."

Employers wanting further advice on redundancy or any form of employment law can contact phil.allen@maceandjones.co.uk or call any member of the Mace & Jones employment law teams in Manchester: 0161 214 0500 Liverpool: 0151 236 8989 Knutsford: 01565 634234.