Solicitors warn of increasing employment law risks to employers
Following the simultaneous publication of 2007/8 and provisional 2008/9 statistics from the Employment Tribunal, our employment solicitor Alan Jenner warns that without taking precautions, the next year could prove very expensive for local employers.
“The latest figures are very worrying. Unfair dismissal claims have increased by 22% compared with the previous year with redundancy claims up by 26%. Equal pay applications have increased almost tenfold since 2003. Employers are often letting staff go and calling it redundancy – which may not be correct. Many businesses sadly don’t follow correct procedure and failure to do so can be very costly. Before the recession, employees may have been less likely to make a claim on the basis that they found work quickly. With unemployment rising rapidly and few job vacancies around, workers, as in previous recessions, are finding it hard to get a new job and are understandably more likely to make an application to the Employment Tribunal. We strongly recommend that employers take particular care with employment law issues in the current economic climate and take the following simple steps:
- Check contracts of employment – under an employment contract, workers may be entitled to more than the statutory minimum redundancy pay
- Don't make verbal agreements – carefully consider your legal position before agreeing to anything and make sure any agreement is in writing
- Follow procedure carefully when dismissing staff – whether for redundancy or any other reason.
- Carry out appropriate consultations. Not only will failure to carry out appropriate consultations put business at risk of claims, but in failing to communicate sufficiently with staff, any business also risks severe damage to team morale.
If in doubt about any aspect of employment law or procedure – don’t take any chances. Employers would be well advised to check their position with a specialist employment solicitor.”
Alan’s advice echoes that of Keith Mizon, the director of advisory and conciliation service Acas, who states, “As with previous recessions, there has been an increase in unfair dismissal, redundancy payments and wages cases. Misunderstanding redundancy selection processes, which can be complex, or poorly communicating them, can leave people feeling unfairly treated.”
For further information and advice, please contact Alan Jenner on 01722 422300 or email Alan Jenner
