16/12/2003

Managing redundancy tops employer concerns

Despite the slow economic recovery experienced by business during 2003, new statistics from a business consultancy show that managing redundancy tops this year's list of HR concerns for employers.

Croner Consulting, the UK's largest provider of in-depth advice and practical support for business, received over 100,000 calls to its employment advice lines on over sixty-five subjects through 2003. More than one in ten calls were related to redundancy issues.

This was closely followed by employment terms and conditions; absence and sickness; disciplinary procedures; pregnancy; and holiday and holiday pay.

Redundancy callers' queries ranged from fair processes of dismissal in a redundancy situation, to assistance in calculating redundancy payments.

Employers must follow a fair process when it comes to making redundancies. Dismissals must comply with the definition for redundancy with failure to do so making the dismissal unfair.

A legal framework is in place to protect employees from unfair dismissal. However, with around 44,000 applications for unfair dismissal registered by employment tribunals every year, many employers are obviously still not complying.

The average compensation award is £5,917, but in some cases has been over £60,000. This can be avoided, Croner said, if businesses ensure they comply with the Employment Rights Act 1996, which provides guidelines on a fair redundancy procedure.

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