Handling redundancy tribunals

"Reducing the headcount is an unpleasant and disruptive experience for employers and employees alike and employers need to ensure that they follow a fair and reasonable procedure," Paula McNamee, Head of Employment at DGB Solicitors, said. "If employers fail to do this, they could face an unfair dismissal claim which will include compensation for future loss. This could be big money, particularly in industries like construction or property where it is likely to be increasingly difficult to find a new job in the current economic climate."

An unfair dismissal award can now be as much as £72,900, while the average costs of defending an unfair dismissal claim are £9,000.

Government statistics show there were 132,577 employment tribunal claims accepted in 2006/07 compared to 115,039 in 2005/06 and 86,181 in 2004/05.

The Heswall-based firm says it has seen a significant increase in enquiries from companies about how to implement redundancies and that many of the small companies simply do not have adequate procedures in place.

DGB Solicitors' proactive approach includes going direct to their clients and working with them in-house to review their procedures and guide them through the redundancy process. "In order for businesses to survive the credit crunch, it is important that employers think now about how to handle job losses," Ms McNamee said.

New research by management consultancy firm Hay Group and the Centre for Economic and Business Research revealed up to 350,000 jobs could be axed in the UK over the next 18 months.

Ms McNamee said there is huge scope for the unwary employer to get it wrong, including failing to warn and consult with employees about impending job losses, trying to rush through a redundancy programme and failing to consider suitable alternative employment.

Smaller businesses that do not have a specialist Human Resources department could be particularly vulnerable.

Ms McNamee said others may have procedures that are not compliant with the age discrimination laws that came into force in 2006. These make ‘last in, first out" policies increasingly open to a claim for indirect age discrimination as younger workers haven't had the time to build up years of service.

Similarly, redundancy procedures favouring the selection of part-timers before full time workers are likely to lead to claims for indirect sex discrimination.

DGB Solicitors are committed to educating businesses in the art of taking low-cost preventative measures in an effort to avoid high cost claims.

Ms McNamee added: "An average time for getting for an unfair dismissal claim before an employment tribunal is four to six months. This involves the business in considerable time and expense in preparing for the tribunal hearing. There's also the risk of adverse publicity and time out of the business to deal with the tribunal. Even if the employer wins, they won't get their costs back in most circumstances. Prevention is better than cure and employers should check their redundancy procedures now."

For more information about DGB Solicitors call 0151 342 2211 or visit www.dgbsolicitors.co.uk

 

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