Apparently, some of this increase in employment tribunal activity could be justified!
Premierline Direct report that over a third of businessses were worried they hadn't followed the correct procedures - not surprising when the next stat in
their press release suggests 37% of small businesses did not seek legal or HR advice beforehand.
Redundancies are never a pleasant matter to deal with, but they can be a relatively simple, quick & cheap way of keeping costs down - particularly for small businesses - and if done properly, they could influence the survival of the business.
Fear of a claim for unfair dismissal (a badly handled redundancy would normally fall into this criteria) is a legitimate concern for any business, but as seen by the ACAS report, many cases can be settled before a full tribunal hearing, and even in the worst case scenario of a full hearing, the costs saved in employee's wages (if the dismissal is done properly - when the case should normally be successfully defended) would often be significantly more than paying for the cost of defending a claim (not all legal services - or at least not the
Employment Law Clinic - charge ridiculous fees for their professional services).
While I'm here, I should say hello to Chris & other members of the forum. I joined the forum following a Twitter invite, so cautious of what to expect & whether I intended to stay, I never got around to introducing myself. A good forum though, so happy to stick around & contribute when I can. Might even update my profile & signature, and take out full membership soon...
Karl Limpert
Employment Law Clinic