A survey conducted by Ellis Whittam, an employment law and HR support firm, has revealed that over a third of employers are worried about not following a fair and compliant redundancy process.
The concerns stem from the potential for unfair dismissal or discrimination claims, with 44% of responders stating that they are not confident in the current redundancy process.
The survey of over 440 UK business leaders also revealed that two-thirds of employers believe the prospect of making redundancies has negatively impacted their mental wellbeing.
James Tamm, director of legal services at Ellis Whittam, said: “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 found that 59% of those surveyed said “clarity and consistency” of government guidance would help them feel more confident.
A main cause for concern for the business leaders is that since 2017, employees have faced no costs in raising a tribunal claim.
This, when paired with the fact that 52% of respondents were unsure affected employees will find another job due to wider economic factors, could lead to a “drastic” rise in unfair dismissal claims.
Statistics from the Ministry of Justice showed a surge in tribunal claims during the first lockdown, leading the government body to predict that the same “rise in employment receipts is likely to continue” as the job retention scheme comes to an end, despite its extension to Spring 2021.