A firm with 15 employees and a turnover of over £4,000,000 I was talking to was trying to manage a troublesome, unproductive member of staff. They had a few meetings with the person in question and performance was not improving. This business asked me what would happen if they managed the person out of the business and things got nasty. What would happen if troublesome staff tried to bring an action?
So I had to tell them that the maximum award for unfair dismissal has increased from £73,400 to £74,300 and the maximum of one week’s pay for calculating redundancy pay has increased from £430 to £450. These figures apply to dismissals which take effect on or after 1 February 2013.
They did look a little pale at the response.
There’s nought stranger than folk and not many businesses could sustain a £74,000 hit. The good news, however, is that Employment Practices Insurance will protect you from this eventuality.
If you would like to know more about how to protect your business from troublesome staff, then please contact us.
