The UK’s rate of unemployment rose to 4.8 per cent in the period between June and September, while redundancies reached a record high, according to the latest data from the Office for National Statistics (ONS).
The figures show that redundancies increased to 314,000 in the period, with employers making redundancy considerations as the Coronavirus Job Retention Scheme (CJRS) began to taper down ahead of the originally planned closing date at the end of October.
While the CJRS has now been extended until March 2021, and employers can re-hire employees that were employed as of 23 September, and on the payroll on or before 30 October, some experts say this extension came too late for many that were made redundant in this time.
In total, the unemployment figures rose by 243,000 in the three months to September, which is the largest quarterly increase in more than a decade. The redundancy figure was higher owing to many people who may have either retired or decided not to look for work after being made redundant, thus not appearing in the official unemployment figures.
Rishi Sunak, Chancellor of the Exchequer, said: “I know that this is a tough time for those who have sadly already lost their jobs, and I want to reassure anyone that is worried about the coming winter months that we will continue to support those affected and protect the lives and livelihoods of people across this country,”
The Government has extended many key coronavirus business support measures with England entering a second national Lockdown until 2 December, but many employers will now be making key considerations over whether employees should be furloughed and also looking ahead at potential redundancy decisions in the spring as the CJRS comes to an end.
Samantha Randall, an Associate Solicitor with Palmers who specialises in employment law, said: “It is important to remember that there are strict rules which employers must follow when making redundancies.
“If your employer does not follow a reasonable procedure during the dismissal process, you might be able to take legal action against them and seek compensation.
“Although, employees must have held their job for at least two years prior to being dismissed, to earn the right to challenge their employer, there are a number of automatically unfair dismissals which do not require a set continuous service period.
“However, from the date your employer lets you go, you will only have three months (less one day) to start taking action, so it is important to act fast and seek specialist advice as soon as you can.”
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