Beware of redundancy law, employers warned

The warning came after a survey by the Chartered Institute of Personnel and Development (CIPD), published earlier this month, revealed more than a quarter of employers are planning to make redundancies.

A spokesperson for law firm Mace & Jones said the figures were ‘concerning’, adding that business owners should be on ‘red alert’ or risk being tripped up by complex employment laws, creating bad staff morale, and damaging productivity.

“Employers can walk into a minefield of costly and time consuming problems if they mis-manage the redundancy process,” said Phil Allen, employment law partner at the firm.

“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,” he said.

“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,” he said.

© Crimson Business Ltd. 2008