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Businesses 'face a tough task when making redundancies'

Businesses 'face a tough task when making redundancies'

Firms facing the prospect of making redundancies as a result of the government's Comprehensive Spending Review have several options open to them, according to one expert.

Peter Reilly, director of human resources research and consultancy at the Institute for Employment studies, said the best way a company can hang on to workers that benefit the business is to decide on its own criteria.

While this allows a firm to keep a group of people with the desired within the workplace, it could lead to damaged staff relations and complaints from trade unions if the process is not deemed reasonable, he noted.

Mr Reilly stated another option is to ask people to put themselves forward for redundancy, but he warned this can also cause problems.

"You've got to either exclude groups up front or be prepared to turn people down and have criteria against which you do it," when taking the voluntary route, he observed.

Last week, Brendan Barber, general secretary of the Trades Union Congress, claimed half a million public sector jobs could be lost as a result of government spending cuts.

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