Experts in Business

Many businesses remain unaware of the necessary steps needed to be taken in order to survive the current recession. More and more small businesses are facing unfair dismissal claims after failing to follow statutory redundancy procedures. Research from Hiscox has revealed a threefold increase in insurance claims from small businesses being sued by employees for unfair dismissal in the last quarter of 2008. It is recommended that SMEs should seek the advice of professionals when conducting redundancies or dealing with discriminating issues or they may risk claims if they fail to follow procedures correctly. Research found that the employers make three common mistakes: failure to follow collective consultation procedures correctly, neglecting to carry out a fair and reasonable redundancy selection process, and making people redundant for non-valid redundancy reasons – such as poor performance.