Right Hand HR (RHHR) has been inundated with calls from hundreds of worried businesses looking for advice on cutting back staffing numbers as the slowing economy hits their growth plans.
As a result the human resources outsourcing provider has created a series of packages which will help managers to follow the correct legal and statutory procedures when considering making redundancies.
The news comes after computer firm Hewlett-Packard announced 24,600 global redundancies and British Airways announced plans to make 1,400 staff redundant.
A recent survey from the Chartered Institute of Personnel and Development (CIPD) showed that almost a third of employers are planning redundancies in the second and third quarter of this year.
Meanwhile the number of employers taken to employment tribunal for unfair dismissal last year grew from 41,832 to 44,491, with the average payout costing employers just under £8,000. Figures due out in November are expected to reflect a further increase in cases.
Director of RHHR, Sam Colquhoun said businesses which need to make redundancies to secure their future risk big fines if they do not act carefully now.
She said: “The credit crunch has had a huge impact on business confidence across the UK. Companies are now reacting to the deteriorating market conditions and are looking at ways to tighten their belts so their business can survive these hard times.
“We have been taken aback by the huge number of enquiries we have received from businesses large and small from across the UK wanting advice on the correct procedures for making redundancies.
“This is a complex and difficult area for employers who are expected to follow well-defined procedural framework and legal provisions. Yet many employers do not have the expertise to deal with the requirements and risk being taken to Employment Tribunal if they do not get it correct.
“Additionally employers who do not deal with redundancies in a professional manner can often find their remaining workforce becomes de-motivated and demoralised, leading to underperformance.”
She added: “While it is regretful that so many businesses are looking to make redundancies we felt there was a real need in the market for more practical advice for employers to ensure that if they do decide to go down the redundancy route they do it correctly.
“We hope these packages will help to ensure both employees and the employer feels they have got the best out of a bad situation.”
RHHR’s provides three levels of support packages to businesses, starting at £399 plus VAT.
The basic package for employers needing to make five redundancies or less includes an initial telephone discussion with a qualified HR consultant, an individual process plan with timings based on the employer’s circumstances, a comprehensive managers’ guide to redundancies, redundancy calculations and template letters to use throughout the process.
While a package for employers needing to make more than 20 redundancies includes a much wider range of support including the management of a ballot process, preparing company announcements, facilitating consultation meetings, training and unlimited on-site support and guidance.
