30% of Employers Likely to Make Redundancies in the Next 12 Months According to ACAS Survey
Key Contact: Claire Knowles
Author: Swyn Llyr
A new study from ACAS has published that 30% of employers are likely to make redundancies in the next 12 months.
YouGov was commissioned by ACAS to ask British businesses about proposed redundancies. The study revealed that 20% of small and medium size businesses are expected to make redundancies in the next year, rising to 41% for large businesses.
ACAS has encouraged employers to exhaust all internal options in the first instance before considering redundancies. Redundancies are always fact sensitive, and it is important that employers keep an open mind throughout the process. Attention to detail when carrying out individual consultation is crucial. The consultation process should provide employees with a fair and proper opportunity to understand fully the matters about which they are being consulted. Employers should be open to consider volunteers that come forward, whilst also considering whether suitable alternative employment is available.
Be mindful that redundancies can be very difficult and sensitive for employees, but the price of getting things wrong could be higher. Taking termination entitlements into account, redundancies can also be costly for the business even when the process runs smoothly. For dynamic calculations that will help your business understand the cost of redundancies, ask the Employment team about our Employment Cost Calculator tool.
If you require guidance to help manage organisational change and structure a redundancy process, please do not hesitate to contact the Employment Team at Acuity Law.
If you would like assistance with reviewing employment contracts and policies, please contact the Acuity Employment team.