BLOG
Legal worries and mental health concerns mount as business leaders brace for redundancies
- Employers’ greatest concern when making redundancies is the legal risk.
- Prospect of making redundancies has negatively impacted two-thirds of leaders’ mental wellbeing.
- No cost to employee to raise an Employment Tribunal claim.
Despite the last-minute extension of the furlough scheme, new research conducted among UK business leaders has revealed that great concern remains around making redundancies and in particular the legal risk.
Over a third (34%) say they worry about not following a fair and compliant process, potentially resulting in unfair dismissal or discrimination claims. This is greater than the 28% who said their biggest concern is breaking bad news to people and the personal impact on them.
The survey of over 440 UK business leaders, conducted by Employment Law and HR support firm Ellis Whittam, also found two-thirds (66%) believe the prospect of making redundancies has negatively impacted their mental wellbeing.
According to the Ministry of Justice, a big rise in Employment Tribunals is predicted once the furlough scheme ends. In recent official statistics showing Tribunal claims surged during the first lockdown period this year, they commented that: “This rise in employment receipts is likely to continue as the government’s job retention scheme comes to an end at the end of October.” While the furlough scheme has since been extended into the spring, it remains a difficult time ahead for many business leaders.
Employers potentially face a huge challenge, as since 2017, there has been no cost to the employee to raise a claim.
Related READING



Free Download: Business Leaders Redundancy Survey
Ellis Whittam surveyed 443 business leaders who have responsibility for employment and redundancy matters in their organisation to find out how managing the process has impacted them.
James Tamm, Director of Legal Services at Ellis Whittam, said: “In an environment where redundant employees don’t think they will get another job quickly, and in an increasingly litigious culture, employers are bound to face more and more time spent dealing with claims from employees that are trying to get money from every potential source. This stands to put even more stress on business leaders and their organisations.”
The research also found that more than half (52%) of business leaders are unsure whether their affected employees will find another job, given the state of the economy and how things are in their sector.
59% said clarity and consistency of guidance from government, or more certainty over the wider economic impact of Brexit and the future of furlough, would help them to feel more confident.
“Besides the tremendous difficulty redundancies will put on more households, we can’t forget this country’s SME business leaders, who are the lifeblood of so many industries,” added James Tamm.
“The UK economy is built on such companies and many of these leaders have strong personal ties to not only their business but also the people they employ and, in many cases, will now be having to make redundancies. With all the pressures of the current crisis we need these SME business leaders to lead the charge of recovery. We as a nation can’t afford for them to feel mentally jaded, yet two thirds of them are telling us that they are.”

Expert advice, guidance and reassurance
When it comes to redundancy, the right advice and support can make all the difference, giving managers the confidence they need to navigate the process, plus the reassurance of dramatically reduced legal risk.
To find out how Ellis Whittam’s highly-skilled Employment Law specialists can help you turn this complex exercise into a series of manageable steps and make the process as painless as possible, call 0345 226 8393 or find out more about our redundancy support.
Sign up for the latest news & insights
Resources
Latest News & Insights

Challenges in hiring | 3 ways to bridge the recruitment disconnect
Bridging the growing gap between employers and today’s job seekers.

How to resolve conflict in family businesses
BLOG Written by Becs Bridge on 25 September 2025 Working with family members can be one of the most rewarding aspects of running a small

Employer vicarious liability | When is harassment ‘in the course of employment’?
BLOG Written on 24 September 2025 Employers can be held vicariously liable for the discriminatory actions of their staff. But how far does that liability

AI grievances | How employers can respond to questionable complaints
BLOG Written by Daniel Rawcliffe on 16 September 2025 Picture this: you receive a grievance from an employee. It’s lengthy, formal, and packed with references

‘Quiet cracking’ | How to spot and stop silent disengagement in your workplace
BLOG Written by Olivia Board on 12 September 2025 You may have heard of quiet quitting and even quiet firing, but there’s a new ‘quiet’

7 ways to support and sustain high performers
BLOG Written by Andrew Moore on 2 September 2025 Every organisation relies on its high performers – those individuals who consistently exceed expectations and often

Removing hiring hurdles | 6 reasons every organisation needs a recruitment audit
BLOG Written Danielle Fargnoli-Read on 29 August 2025 As recruiters and HR advisers, we often see organisations investing heavily in attracting talent through advertising roles,

Rebuilding regulation | Key updates from the CQC’s board meeting and Director’s blog
BLOG Written on 26 August 2025 The latest CQC board meeting on 25 June 2025 offered a candid update on the regulator’s ongoing transformation efforts.

Shoplifting and aggression | Keeping staff safe amid rising retail crime
BLOG Written by Theresa Lama-Cramp on 22 August 2025 Retail crime is on the rise, and pharmacies are among the hardest hit. According to a