January 29, 2013 07:35 ET

An Unhappy New Year: A Bleak Economic Outlook Means That Understanding Redundancy Law is Now Essential, Says ThomasMansfield LLP

Employers facing growing costs may be tempted to let employees pay the price. ThomasMansfield help to clarify where each party stands.

LONDON, UNITED KINGDOM--(Marketwire - Jan. 29, 2013) - 2012 saw some of the nation's most familiar high street names fall into administration, and with the bleak economic conditions set to continue, it comes as little surprise to see 2013 welcome its own early casualties including HMV and Blockbuster. The entertainment retailers struggled with sluggish sales in hypercompetitive markets, and their respective employees, over 8,000 combined, now face the prospect of redundancy as the future of both companies' lies in the hands of administrators.

Figures released from the Treasury this week confirm that despite a post-Olympics spike in growth, the momentum has not been sustained and the UK economy has shrunk once more, suggesting that Britain is teetering on the edge of a triple-dip recession. In fact, of all recorded British recessions, the recovery from the initial 2008 crash has been the worst in history. In light of this news, even the most established organisations are now finding themselves unsure of their prospects in choppy economic waters. If times are tough or budgets squeezed, firms may well turn to the option of redundancies.

Not only is the risk of redundancy rising, but the complex law surrounding redundancies is continually shifting and evolving. However, looking into redundancy law with ThomasMansfield is the easiest way for any employer or employee to discover where they stand. Legal guidance from an award-winning firm that deals exclusively with employment law can assuage fears over the complexities and provide professional advice that can help in a substantial way.

Whilst the law is indeed complex, some simple facts are clear: redundancy is generally acceptable if the employer is ceasing or curtailing operations. However, even in relatively clear-cut cases, procedure is difficult to navigate, and in many instances employers may fall foul of the law leaving employees short-changed. ThomasMansfield recognises that each case is unique, and can offer the individual guidance each employee requires. The firm can clarify an employee's rights and advise on how to best proceed. The ACAS Code of Practice which governs such processes allows an employee to state their case at a dismissal meeting, and also a right of appeal. In certain circumstances, an employee may find they are eligible to seek compensation meaning that redundancy need not be the end, but rather an auspicious beginning.

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