A LAW firm has revealed a massive rise in redundancy enquiries in what it said is a “stark indication of what could be ahead in terms of unemployment in Scotland”.
A total of 383 businesses contacted Law at Work (LAW) in June to discuss the process for laying-off staff.
That influx represented a 425% increase in redundancy queries compared to April.
The rise saw redundancy enquiries represent almost a quarter (24%) of the firm’s business, up from just 4% two months before.
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LAW, which has offices across Scotland and in London, says this increase shows Covid-19’s long-term impact on unemployment is just beginning to show.
Daniel Gorry, deputy head of employment at LAW, said: “Unfortunately, these figures are a stark indication of what could be ahead in terms of unemployment in Scotland. It is clear that a lot of businesses are now seriously analysing what options are open to them once the furlough scheme comes to an end.”
Gorry added that companies must take proper steps during the redundancy process or risk expensive litigation claims.
“We have been speaking to more and more businesses in recent weeks that are desperately looking to reduce their costs. Sadly, this often means looking at their staffing levels.
“It is absolutely vital that companies don’t cut corners in the process, even during these difficult times,” he said.
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