Made.com announces job losses over Zoom – What are the legal implications?
The current outlook for the UK economy is looking bleak as the Office for National Statistics reports that the economy shrank by 0.2% in the three months to September. A recession is defined as a prolonged and significant economic downturn and is commonly measured as two consecutive quarters of negative growth. The UK is expected to be in a recession by the end of the year.
In a recession, unemployment typically increases and so job losses at companies such as Made.com are unfortunately likely to be the first of many businesses making job cuts. Pressure on the economy is causing a number of businesses to collapse and with the cost of living continuing to rise, much of the UK population are beginning to feel the pinch.
It is reported that staff are looking to take legal action against Made.com after they were informed that they no longer had a job over Zoom. Job cuts at Made.com came as a result of its collapse and subsequent buy-out by retailer giant Next. The former chief executive of the company Made.com, had issued an apology to those affected by the company entering administration and had stated that the company had fought to avoid this situation.
It is believed that Made.com cut some 400 jobs and have made around 300 redundancies. Former members of staff are currently seeking legal advice as to the strength of their claim as they seek compensation over the handling of the redundancies.
The sacking of employees over Zoom has come as a shock to many who expected lessons to have been learnt from the outcome of the P&O Ferries scandal that took place earlier this year. P&O had similarly sacked almost 800 seafarers without warning and with no redundancy plan in place. You can read our previous articles on this subject.
P&O Ferries sacking 800 staff – What are the legal implications?
P&O Ferries sacking 800 staff – What happened next?
Depending on the number of employees under threat of redundancy, there are certain procedures and minimum consultation periods that should be followed when making staff redundancies. Failure to comply with these procedures could see businesses faced with civil and/or criminal penalties.
If you require any assistance on an employment matter then please do not hesitate to contact our employment team.
To discuss anything arising from this update, please contact Jas Dubb on 0121 710 5929 or via email at [email protected]. You can also contact any other member of the Employment Team on 0121 233 4333 or email us at [email protected]