Business

One in five businesses considering redundancies in next 12 months - Acas

One in five employers are likely to make staff redundancies over the next year, research from Acas suggests
One in five employers are likely to make staff redundancies over the next year, research from Acas suggests One in five employers are likely to make staff redundancies over the next year, research from Acas suggests

AROUND one in five UK employers are likely to make staff redundancies over the next year, new research suggests.

Conciliation service Acas said its study indicated that large businesses are more likely to reduce their workforce than small and medium-sized firms.

Acas chief executive Susan Clews said: "The impact of global events has seen some businesses facing difficult circumstances and our poll reveals that nearly one in five are considering redundancies in the year ahead.

"Redundancies at large organisations have been in the news recently and it appears that three in 10 organisations that employ more than 250 employees are likely to make redundancies in the next 12 months.

"Acas advice for bosses is to exhaust all possible alternatives to redundancies first but if employers feel like they have no choice then they must follow the law in this area or they could be subject to a costly legal process."

Acas said if an employer finds there are no other choices than to make redundancies, there are strict rules on consulting staff.

Employers who want to make 20 or more staff redundant over any three-month period must also consult a recognised trade union or elected employee representatives about the proposed changes.

For 20-99 redundancies, consultation must start at least 30 days before the first dismissal can take effect, and for 100 or more redundancies it has to start at least 45 days before.

For fewer than 20 redundancies, there is no set time period but the length of consultation must be reasonable, Acas said.

Acas advisers said they have seen many examples of joint working with unions that has produced "creative alternatives" to job losses such as part-time working, cuts to overtime, finding alternative roles and retraining.