Despite the recent rise in the unemployment rate research has suggested that small business owners are afraid of making redundancies for fear of being sued for unfair dismissal.
According to research conducted by business insurers Premierline Direct small firms fear the potential financial consequences of redundancies, with limits on awards for unfair dismissal and redundancy payments increasing earlier this year.
Of those small business owners concerned about being sued by workers over 70% said that their firm did not have necessary funds to pay out compensation and 36% said would be worried they hadn't followed the correct procedures.
37% of small businesses that have had to let staff go did not seek legal or HR advice beforehand, leaving themselves open to potential legal action.
"Redundancies have increased considerably in line with the economy's performance and many business owners are facing the prospect of having to make staff redundant; something which they might not have experienced before," said Chris Little, managing director of Premierline Direct.
www.ukba.co.uk
Showing posts with label redundancy. Show all posts
Showing posts with label redundancy. Show all posts
Tuesday, 25 August 2009
Wednesday, 25 February 2009
Business Owners Urged Not To Cut Staff
Small business owners have been urged to explore different options rather than cutting staff by the Chartered Institute of Personal and Development and the arbitration and conciliation service (Acas).
With cash flow tight for many small firms cutting costs by loosing staff can seem like the best option, but businesses that cut too many staff have been warned that they will damage staff morale and could leave themselves worse off in the long run.
"Many of those organisations that were quick to lay off people in the last recession struggled to meet renewed business demand when the economy picked up again," said John Taylor, chief executive of Acas.
Employers are being advised to offer voluntary redundancy rather than sacking staff, consider pay freezes and look to re-train workers in different areas of their business rather then laying them off.
Source: http://www.newbusiness.co.uk
With cash flow tight for many small firms cutting costs by loosing staff can seem like the best option, but businesses that cut too many staff have been warned that they will damage staff morale and could leave themselves worse off in the long run.
"Many of those organisations that were quick to lay off people in the last recession struggled to meet renewed business demand when the economy picked up again," said John Taylor, chief executive of Acas.
Employers are being advised to offer voluntary redundancy rather than sacking staff, consider pay freezes and look to re-train workers in different areas of their business rather then laying them off.
Source: http://www.newbusiness.co.uk
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