Losing headcount without losing your shirt

It is now official. Britain is in recession. This is not good news for businesses or for many employees. It is, however, generally a busy time for litigators – Hoorah for the lawyers!
 
Despite the economic slowdown there is precious little evidence that the cost of anything is going down. This is equally true with regard to the cost to employers of failing to get their employment practices and procedures right.
 
Sadly, an increasing number of firms are shedding staff, restructuring or selling all or parts of their businesses. Firms are also looking at every opportunity to cut costs and overheads. All of these have an impact on the workforce and, like it or not, all give rise to potential claims by employees where they are not done properly.
 
Obviously redundancies are at the forefront of most peoples minds at the moment. There are clear rules about how the redundancy process must be conducted. Failure to comply with these rules can be a very expensive business and can potentially make the difference between a business surviving and one going under.
 
Like it or not, there is a huge raft of legislation and regulation, both domestic and European, which now governs every aspect of the employment relationship. It is of no surprise to anyone (other than, apparently, the legislators) that increased regulation has resulted in an increased risk to employers and an increased number of claims against them.
 
The expansion of the classes of workers who can now take advantage of anti-discrimination protection means that there is unlikely to be an employer in the land who may not potentially be subject to an uncapped award (ie. no limit on compensation) from a Tribunal.
 
Commonsense and Google may simply no longer be enough to reduce the risks for employers. Proper expert advice remains as vital now as it has ever been. So, distasteful as “Hoorah for the lawyers” may be, sound legal advice is not a luxury, but a commercial necessity.

 Daniel Oakland is the head of the Employment Law Department at Kerman & Co LLP. If you have any enquiries in relation to employment matters, please contact Daniel on 020 7539 7250 or by e-mail at [email protected]

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.