Businesses in the South of England including London are bracing themselves for large-scale redundancies as a result of the credit crunch.
Jaluch, a human resources company which provides services to more than 300 organisations, has reported a 30% rise in the volume of redundancy-related queries.
Helen Clarke, managing director of Jaluch commented: “A lot of companies are trimming their staff quotas and seeking greater efficiencies.”
Clarke also urged caution when companies take the plunge and lay staff off. Often companies do not follow the necessary protocol when making staff redundant, and matters such as offering the correct remuneration package are overlooked, she said.
A resulting tribunal can be astronomically expensive; a one-day hearing can cost a company up to £10,000, estimated Clarke.
“Current financial markets mean there will inevitably be a large number of redundancies and failing to manage the process properly could incur hefty costs,” said Clarke.
© Crimson Business Ltd. 2008
