Increase in SMEs seeking redundancy advice

The Federation of Small Businesses (FSB) is reporting a dramatic rise in calls to its legal advice line regarding redundancies.


The Federation of Small Businesses (FSB) is reporting a dramatic rise in calls to its legal advice line regarding redundancies.

The Federation of Small Businesses (FSB) is reporting a dramatic rise in calls to its legal advice line regarding redundancies.

The organisation says that calls in the latter part of the year rose 167 per cent (to nearly 8,200) on the same period in 2007. This is compared with a 27 per cent increase for the first half of the year.

Andy Percival, franchise owner of residential property finder The Property Search group, had to make four redundancies last year and is looking to make further cuts.

He says: ‘It’s awful. We’ve lost good, trained people. The danger is that quality also suffers. When the upturn comes you need to have good people on board or you might miss out.

‘The government seems to be using lots of the right words, and launching all these initiatives, but nothing seems to be helping.’  
 
John Wright, chairman of the FSB says: ‘Small businesses are being hit just as hard as big businesses in these difficult economic times as these worrying figures show. We cannot afford to lose our vibrant small and medium sized business sector.’

In a poll of 5,000 FSB members conducted by the organisation at the end of last year, 20 per cent revealed they were cutting staff, while a third said they were considering it.

This follows figures released by the Office for National Statistics that show 1.92 million are now unemployed in the UK, with advisory service firm Ernst & Young predicting the figure will reach 3.4 million by 2011.
 

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