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06/08/2009
Lawsuit fear 'makes businesses afraid to sack workers' |
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A number of small businesses are afraid to sack workers during the recession because they fear the potential redundancy law implications, new research has suggested.
Approximately 64 per cent of company bosses asked by business insurance firm Premierline Direct stated that they believed sacked workers would be looking for some form of revenge, with lawsuits for unfair dismissal a possibility.
More than a third of those afraid of being sued said it is because they would worry they did not follow the necessary procedures.
Meanwhile, 73 per cent revealed they were fearful because the company could not afford to pay compensation if they lost a case.
Premierline Direct's managing director Chris Little claimed many bosses do not realise that there is plenty of help available to them so that they can negotiate the redundancy process properly.
His firm said it was worrying that 37 per cent of businesses that did lay off staff did not seek legal advice first.
The research follows reports that unemployment is soaring. Earlier this week, BBC News revealed South West Select Committee figures which showed a 227 per cent increase in the number of people out of work in Swindon.
Written by Laurence Smith |
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