Redundancy not to end the employers' problems, warns Croner
Employment Tribunals on the rise spelling testing times for UK businesses
London, July 22 2008 – With fears of an economic recession around the corner and employment tribunals on the rise, Croner the UK’s leading workplace information and consultancy providers is warning employers that redundancy is not the easy solution that they seek.
Employers looking to cut costs by making staff redundant are now finding that instead of the financial gain they envisaged, they are in fact facing greater financial pressures.
For many employers it may be the first time that they have considered making many staff redundant, and so the majority of them will be unaware that they have to follow fair redundancy procedures to avoid unfair dismissal claims being brought by employees at the employment tribunal - a fact which is mirrored by the dramatic rise in employment tribunals.
Newly released figures by the UK Tribunals Service, highlights a 42% rise in claims over the last twelve months1. Croner, part of Wolters Kluwer UK, has seen a fifty percent rise in the claims it handles on behalf of employers over the last three months.
Richard Smith, Head of Litigation at Croner, says: “What we have seen over the last twelve months and certainly in the last three is a sharp rise in employment tribunal claims which is a direct result of the credit crunch.
“Economically this is a dark time for UK businesses and employers are increasingly looking at ways in which to preserve their long-term future. Many believe that the only way to do this is to make employees redundant. However, because they’re often unaware of the procedures involved in dismissing someone fairly they are not only paying out the costs of making staff redundant, they’re also faced with litigation costs and tribunal awards.
“It is vital that they manage that process correctly and seek professional advice before making staff redundant. We advise all our clients that they have to handle dismissals fairly as the law reflects that. We carefully guide them on what their legal responsibilities are and how they should handle the redundancy process.
“It is difficult, particularly for smaller businesses, to put in place and execute plans quickly for these challenging times. In the current environment, they need to equip themselves with a different toolkit to tread the fine line between treating your employees fairly, avoiding tribunals and at the same time contributing to the organisation’s cost reductions.”
About Croner
Croner is the UK’s leading provider of workplace information and consultancy services, supporting businesses of all sizes through the minefields of employment law and health and safety. Croner has a fantastic success rate at employment tribunals, settling fewer cases than the average - only 52% - and winning almost nine out of 10 cases that are taken to a hearing. With our integrated approach to advice and case management and in-depth knowledge of tribunals we can offer expert advice to anyone facing an employment tribunal. Furthermore our specialist advocates are able to present our client’s cases in the best way possible to maximise their chances in the lottery of employment tribunals.
For further information, visit www.croner.co.uk, email mktg@croner.co.uk or call 0800 634 1700.
About Wolters Kluwer
Wolters Kluwer is a leading global information services and publishing company. The company provides products and services globally for professionals in the health, tax, accounting, corporate, financial services, legal, and regulatory sectors. Wolters Kluwer has annual revenues (2007) of €3.4 billion, maintains operations in over 33 countries across Europe, North America and Asia Pacific and employs approximately 19,500 people worldwide. Wolters Kluwer is headquartered in Amsterdam, the Netherlands. Visit www.wolterskluwer.com for information about our market positions, customers, brands, and organisation.
Contact
Clare Moore
Communications Manager
Wolters Kluwer UK
Tel: +44 (0)1455 897156
clare.moore@cronerconsulting.co.uk
1 The ET received 189,300 claims, 42% higher than expected. This was mainly due to the receipt of high volume multiple claims. These types of claim remain in the system much longer than other types of claims and subsequently contributed to a 73% increase in thenumber of outstanding cases from 138,200 in April 2007 to 239,300 in March 2008. Source: www.tribunals.gov.uk