Deluge of redundancy enquiries highlights unemployment pain ahead
A Scottish employment law firm has seen almost 400 companies contact it in recent weeks to discuss how to handle redundancies as the end of the furlough scheme approaches.
Law At Work said the flood of enquiries about laying off staff in June, representing a 425 per cent increase on the figure seen in April this year, highlights the significant impact Covid-19 is having on Scottish unemployment.
Dealing with redundancy enquiries represented almost a quarter of the workload at the firm in July, compared to just 4 per cent in April.
Daniel Gorry, deputy head of employment law at the practice, which also handles HR and health and safety issues, warned that it is vital companies take the proper steps during the redundancy process to avoid costly claims further down the line.
“Unfortunately, these figures are a stark indication of what could be ahead in terms of unemployment in Scotland. It is clear that a lot of businesses are now seriously analysing what options are open to them once the furlough scheme comes to an end,” he said.
Gorry said redundancy is one of the most closely monitored and legislated aspects of employment law and it is “absolutely vital” that companies don’t cut corners despite the highly challenging times they are facing.
“A redundancy tribunal can be costly and time-consuming, and with the tribunal service seriously backed up as a result of the pandemic, it is likely that any challenges to redundancies won’t be heard in court until next year,” he pointed out.
“Any redundancy should always be seen as a last resort but regrettably we expect to see a significant increase in companies consulting with their workers on redundancy,” added Gorry.