Updated: Saturday, 24th February 2018 @ 8:49am

Redundancies drop as panic subsides

Redundancies drop as panic subsides

MASS redundancies made in the heat of the credit crunch may have been too hasty, experts say.

Human resource bosses have been forced to make tough decisions this year due to the current economic climate and have suggested that such redundancies may have been made too hastily.

One Manchester consultant, who did not wish to be named, said: “Companies have simply been panicking.

“A couple of redundancies we’ve made with companies might have been too rash on reflection.

“Businesses were definitely panicking back in June, although things have calmed down now.  Over the summer I’ve made about 10 redundancies which isn’t that much, considering.”

She added: “It has been suggested that companies have been making redundancies simply to ‘clear the bottom of the trough’, but that’s not my experience at all.”

The government, in an attempt to reduce further job losses, has raised the cost of laying off staff for employers, forcing them to find alternatives.

Over the last financial quarter, redundancies in the UK have in fact fallen by 55,000 to 246,000.

Simon Horsfield, partner at Pinsent Mason, said that from last Thursday the weekly redundancy pay increased from £350 to £380, increasing the cost to employers who are seeking to make redundancies.

The maximum possible statutory payment is now £11,400.  The government had planned to make the increase in February but brought the move forward to support employees who are made redundant as a result of the recession.