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
Climate change and OHS | Safeguarding workers in a changing world
BLOG Written by Tim Ketteman on 17 April 2024 Global warming – defined as the sustained alteration of average weather patterns over extended periods –
Enhancing health and safety in schools | 8 strategies for ensuring continuous improvement
Blog Written by Ross Henderson on 17 April 2024 In educational settings, ensuring the safety and wellbeing of students, staff, and visitors is a top
HSE continues to expand its asbestos campaign
BLOG Written by Nick Wilson on 16 April 2024 The dangers of asbestos exposure are well documented. Given these dangers, the Health and Safety Executive
Leveraging the candidate journey to maximise recruitment success
BLOG Written by Danielle Fargnoli on 10 April 2024 The candidate journey is a critical determinant of recruitment success for organisations. Indeed, beyond merely filling
Navigating work-related stress | Strategies for employers
BLOG Written on 2 April 2024 April is Stress Awareness Month, and with stress, depression and anxiety accounting for of all work-related ill-health cases, it’s
Managing employees suspected or convicted of criminal offences
BLOG Written by Susie Lockheart on 20 March 2024 For employers, navigating the delicate balance between an employee’s personal life and their professional responsibilities can
Avoiding discrimination | The impact of a rising State Pension age on PHI schemes
BLOG Written by Lesley Rennie on 28 February 2024 The existing State Pension age in the UK stands at 66 for both men and women,
Exploring recruitment trends in 2024 | What’s changing in the hiring landscape?
BLOG Written by Danielle Fargnoli on 27 February 2024 2024 is well underway and the world of recruitment is evolving at a rapid pace, driven
Flexible working | Acas survey reveals homeworking continues to rise ahead of April changes
BLOG Written by Gerard O’Hare on 22 February 2024 When the pandemic hit, homeworking was seen as a temporary solution. Four years on, it appears