According to a forecast by the CBI, at least 10,000 jobs could be lost in the UK's financial services industry over the next three months and estate agencies are closing at a rate of 150 branches a month, with 4,000 job cuts already this year.
Experts at national HR specialist Deminos warn that unless employee contracts are watertight, the inevitable job losses could end up costing thousands of pounds at the tribunal court. Last year in the UK there were more than 130,000 employment tribunals – a staggering 530 per working day - with the average payout for an unfair dismissal costing employers £7,974, as well as the court costs involved. In total this can run into tens of thousands of pounds.
But Neil Atkinson, director of Deminos on Gateshead’s Watermark business park, said that by taking a few preventative steps, companies can avoid paying these extra costs. He said: “Redundancy is never an easy path to take for a company but there are steps to take that can make it less painful for both parties. Prevention is always better than cure and by taking action now, companies can avoid the pain and huge expense of tribunals.”
