Research highlights that making redundancies in a fair way is a top concern for HR teams with around a third fearing that they will not be able to do this.
New research from Ellis Whittam, an employment law and HR support firm, shows the fear around the redundancy process for HR staff with this taking a significant toll on their mental health.
Around a third (34 per cent) stated that their biggest worry was about not following a fair and compliant process, which could ultimately lead to unfair dismissal claims or discrimination claims.
This fear was actually higher than the amount of HR staff who felt fearful towards redundancies due to having to break bad news to an employee and the personal impact that this would have on them, which affected over a quarter of HR staff (28 per cent). Almost half (42 per cent) of employers stated that they did not feel confident in the redundancy process.
This trepidation towards the redundancy process is evident when considering data linked to mental health. Around two-thirds of HR employees (66 per cent) believed that the prospect of making redundancies has negatively impacted their mental health.
In addition, over half (52 per cent) fear that they are unsure whether affected employees will be able to find another job, given the state of the economy and the impact of COVID-19.
Additionally, the Ministry of Justice has stated that there will likely be a rise in employment tribunal claims due to the mass redundancies made as a result of the COVID-19 pandemic. Already, figures have shown that the backlog for individual cases has surpassed figures from the 2008 financial recession. In addition, the waiting time for single claims related to discrimination and unfair dismissal has reached 38 weeks.
This challenge may be even greater than expected since the abolishment of employment tribunal fees, which occurred in 2017, means that there is no longer a cost for employees to raise a claim.
James Tamm, Director of Legal Services at Ellis Whittam, said:
In an environment where redundant employees don’t think they will get another job quickly, and in an increasingly litigious culture, employers are bound to face more and more time spent dealing with claims from employees that are trying to get money from every potential source. This stands to put even more stress on business leaders and their organisations.
*Ellis Whittam surveyed 443 business leaders who have responsibility for employment and redundancy matters in their organisation.
Monica Sharma is an English Literature graduate from the University of Warwick. As Editor for HRreview, her particular interests in HR include issues concerning diversity, employment law and wellbeing in the workplace. Alongside this, she has written for student publications in both England and Canada. Monica has also presented her academic work concerning the relationship between legal systems, sexual harassment and racism at a university conference at the University of Western Ontario, Canada.
