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ACAS's annual statistics report for the year up to 31st March 2009 show increases of 27% in Unfair Dismissal claims; 37% in claims for breach of contract; and 58% in disputes about redundancy pay. ACAS will attempt to settle an employment claim to avoid the need for a full tribunal hearing.
The increase in claims reflects the increase in redundancies made due to the recession, and also the difficulties faced by employers when making redundancies. Spirit HR found that many employers also do not know their responsibilities extend after the redundancy is made in a recent poll.
While some companies are still reducing their headcount, others are now planning to increase. This means that whatever the stage a business owner is at they should ensure they are full informed of the real risks of an redundancy related claim in today's climate, and be fully aware of the post-redundancy legal responsibilities.
