Companies having to make redundancies due to the credit crunch are being warned to guard against being taken to an employment tribunal.

Angela Shaw, employment solicitor at Massers, is advising businesses to follow proper redundancy procedures to minimise the risk of claims for unfair dismissal.  

Figures from the UK Tribunals Service annual report show a 32 per cent year-on-year rise, to 189,348, in cases taken to employment tribunals. 

She said:  "These figures suggest workers are willing to take their former employers to a tribunal.  In their minds what have they got to lose?  For businesses, they have a lot to lose."

"I have seen a rise in enquiries about redundancies from businesses over the last 6 months.  As the economic downturn makes redundancy more commonplace, businesses must be aware of their obligations during the redundancy process." 

Angela Shaw believes many SMEs may have to start making redundancies for the first time and is warning they could be more at risk of being taken to a tribunal due to lack of HR resources.

"It is vital that they manage that process correctly and seek legal advice before making staff redundant.   Dismissals must be handled fairly and businesses must be aware of what their legal responsibilities are and how they should handle the redundancy process" she added.