Small business insurer Hiscox says there has been a threefold rise in insurance claims during the last quarter from SME employers being sued by former workers for unfair dismissal. The firm says employers are leaving themselves exposed to significant claims. According to Hiscox, the top three claims when it comes to redundancies are: 1.?????? Failure to follow collective consultation procedures and obligations ? necessary where 20 or more workers are at risk and are proposed to be made redundant within a 90 day period. 2.?????? Employers not carrying out a fair and reasonable selection process – for example, not properly pooling people when choosing which people to make redundant. 3.?????? Employers making people redundant where the reason does not genuinely relate to redundancy. Gary Head, SME expert at Hiscox, says: ?Many SME owners will not necessarily have lived through a recession where redundancy has been a fact of working life and are unaware of what they need to do. “All businesses should seek professional advice when it comes to making redundancies or they might find that what started out as a cost-cutting exercise could cost them far more in the long run.? Read Real Business?s guide to sacking your staff hereRelated articlesMore bad news to come on jobs frontUnemployment set to soarHow to motivate the survivorsPicture source
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.