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Study reveals 1 in 3 employers are likely to make redundancies before the end of 2020

A new survey from Acas has found that over a third of employers (37 per cent) are likely to make staff redundancies in the next three months.

Acas commissioned YouGov to ask British businesses about their redundancy plans and knowledge of the law in this area.

The poll found that:

  • Six out of 10 large businesses said they were likely to make redundancies in the next three months;
  • For businesses that are likely to make redundancies, over a quarter (27 per cent) said they plan to do this remotely over video chat or a phone call; and
  • One in four (24 per cent) bosses are unaware of the law around consulting staff before making redundancies. This increases to one in three (33 per cent) where businesses have fewer than 50 workers.

Acas Chief Executive, Susan Clews, said: “Businesses are facing extremely difficult circumstances due to the coronavirus crisis and our poll reveals that many are considering redundancies.
“Acas advice for bosses is to exhaust all possible alternatives to redundancies first but if employers feel they have no choice then they must follow the law in this area.
“Our survey reveals that a third of small businesses do not know about their legal responsibilities on consulting staff when considering redundancies. It is important for them to act responsibly and follow our advice or they could be subject to a costly legal process.”

If an employer finds there are no other choices than to make redundancies then there are strict rules on consulting staff that they must follow.

An employer must discuss any planned changes and consult with each employee who could be affected. This includes staff who may not be losing their jobs but will be impacted.

The minimum consultation period varies depending on the number of employees that an employer wishes to make redundant. By law, employers who plan to make 20 or more staff redundant over the next three months (90 days) 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.

If an employer does not meet consultation requirements, employees can take their employer to an employment tribunal. If successful, the employer may have to pay up to 90 days’ full pay for each affected employee. Someone can also make a claim of unfair dismissal to an employment tribunal on the grounds that they were not consulted, or the consultation was not meaningful.

Consulting employees and unions may help to find alternative solutions to making redundancies.

Acas advisors have seen many examples of this joint working that’s produced creative alternatives to job losses. Such as part-time working, cuts to overtime, finding alternative roles and retraining.

For further advice from Acas about redundancies click here.

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