Business insurance specialists Hiscox have reported a huge rise in the number of ‘unfair dismissal’ claims being made against Small and Medium sized businesses, the last quarter alone saw a threefold increase.
Small business owners are advised that there is a standard procedure to follow when considering redundancy and many owners are either are unaware of the guidelines or choose to ignore them.
The repercussions are serious for employers, who can be sued for ‘unfair dismissal’ if the former employee believes that the rules were not correctly adhered to. Discrimination claims can be made on the basis of race, age or gender if the redundancy process has been abused.
Gary Head of Hiscox says; “All businesses should seek professional advice when it comes to making redundancies or they might find that what started out as a cost-cutting exercise could cost them far more in the long run.”
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