Released on: March 6, 2008, 10:09 am

Press Release Author: Jenna Weekes/Jaluch

Industry: Human Resources

Press Release Summary: The credit crunch is already having an impact on South Coast
businesses

Press Release Body: BUSINESSES all over the South are gearing up for redundancies as
the credit crunch leaves them tightening their belts.

A human resources company in Ringwood, which represents companies across the South
Coast and London, has recently seen a 30 per cent increase in the volume of calls
through its advice centre and staff say a considerable number of enquires relate to
potential redundancies.

Helen Clarke, Managing Director of Jaluch, said: "A lot of companies are trimming
their staff quotas and seeking greater efficiencies. It is gaining momentum.

"Bosses considering large scale redundancies generally have the support of human
resources, but those making just one or two people redundant can slip below the
radar and make very costly mistakes."

Among the errors that could constitute unfair dismissal are failure to consult
adequately, failure to follow the statutory dismissal procedure and omitting some
staff from redundancy selection pools.

Other errors that could cost businesses are failing to offer the correct redundancy
pay or miscalculating tax-free elements of any payoff.

Helen added: "This is a stressful time - there is much uncertainty about the
possibility of recession. Current financial markets mean there will inevitably be a
large number of redundancies and failing to manage the process properly could incur
hefty costs.

"The legal costs leading up to and attending at tribunal, even for just a one day
hearing, can be £10,000. We've heard of companies that end up closing down because
of cash flow problems resulting from legal fees and compensation awards."

Referring to the current market, Helen added: "Some of our clients are being bullish
and pressing ahead with training, but others are being very cautious and some have
already made redundancies."


Web Site: http://www.jaluch.co.uk

Contact Details: South Coast Office
Jaluch Limited
Jaluch House
Deweys Lane
Ringwood
Hants
BH24 1AJ

Tel: 01425 479888
Fax: 01425 479807