“Redundancies at large organisations have been in the news recently and it appears that 3 in 10 organisations that employ more than 250 employees are likely to make redundancies in the next 12 months.
“Acas advice for bosses is to exhaust all possible alternatives to redundancies first but if employers feel like they have no choice then they must follow the law in this area or they could be subject to a costly legal process.”
If an employer finds there are no other choices than to make redundancies then there are strict rules on consulting staff that they must follow.
An employer must discuss any planned changes and consult with each employee who could be affected. This includes staff who may not be losing their jobs but will be impacted.
The minimum consultation period varies depending on the number of employees that an employer wishes to make redundant. By law, employers who wish to make 20 or more staff redundant over any 3 month (90 day) period must also consult a recognised trade union or elected employee representatives about the proposed changes.
For 20 to 99 redundancies, consultation must start at least 30 days before the first dismissal can take effect, and for 100 or more redundancies, it has to start at least 45 days before. For less than 20 redundancies, there is no set time period but the length of consultation must be reasonable.
If an employer does not meet consultation requirements, employees can take their employer to an employment tribunal. If successful, the employer may have to pay up to 90 days’ full pay for each affected employee. Someone can also make a claim of unfair dismissal to an employment tribunal on the grounds that they were not consulted, or the consultation was not meaningful.
Employers should consider all possible options before considering redundancies as other solutions to their situation could be found through consultation with their staff, employee representatives and unions.
Acas advisers have seen many examples of this joint working that’s produced creative alternatives to job losses, such as part-time working, cuts to overtime, finding alternative roles and retraining. New study reveals nearly 1 in 5 employers are likely to make redundancies over the next year
A new survey from Acas has found that nearly 1 in 5 of employers (18%) are likely to make staff redundancies over the next year.
Acas commissioned YouGov to ask British businesses about their redundancy plans in the next 12 months.
The poll found that large businesses were more likely to make redundancies than small and medium sized (SME) businesses. 3 out of 10 large businesses (30%) are likely to make redundancies and 10% of SMEs said that were likely to do so.
Acas Chief Executive, Susan Clews, said: “The impact of global events has seen some businesses facing difficult circumstances and our poll reveals that nearly 1 in 5 are considering redundancies in the year ahead.
Growing number of businesses at risk of collapse, as costs spiral and Covid loan repayments come due, says new report
The latest Begbies Traynor “Red Flag Alert” research, which has examined the financial health of British companies for the past 15 years, highlights the strain two years of extraordinary financial pressures have had on thousands of UK companies.
Helped through the pandemic and its aftershocks by state support, the report now reveals a 19% jump in the number of companies in critical financial distress with these measures cut off and costs spiralling.
The most recent County Court Judgements (CCJs) data revealed 11,673 rulings in March – up 179% on the monthly average for the previous two years – and the highest level in a single month for five years.
With companies struggling with rising inflation, coupled with the demands of repaying Government Covid support loans, there is now a growing risk of a wave of insolvencies affecting vulnerable British businesses.
Julie Palmer, partner at Begbies Traynor, warned that unless there is action to allow struggling businesses to mitigate the impact of these pressures, they risk being unable to continue to operate.
“The critical distress and CCJ data are likely predictors of a wave of insolvencies coming – it’s just a case of when the dam holding it back finally bursts.
The latest Government insolvency figures for March reinforce this worrying trend with creditors voluntary liquidations – the most common type of corporate insolvency – more than doubling compared to March 2021 and up 62% compared to March 2019
“The Government’s finances are themselves taking a hit from the increasing interest environment; they are simply not able to introduce further significant funding into the system, and they now have a choice to make. Do they rush to recover funds handed out during the pandemic to ensure there was a functioning economy afterwards? Or look for ways to control the number of businesses that fail?
“Having put so much money into protecting businesses over the past two years, ministers won’t want to see it wasted as companies collapse, unable to repay their debts.”
Ms Palmer said one way the Government could ease the pressure on embattled businesses while not writing off debts racked up through measures such as the Coronavirus Business Interruption Loan Scheme (CBILS) would be taking a longer-term view.
She continued: “I’d expect low-cost forms of further support, probably through leniency in repaying pandemic funding.
“We could see an approach similar to war bonds, with terms being extended as ministers follow the adage that a rolling loan gathers no loss.
“Taking a hard line on repaying CBILS and other loans would likely drive businesses over the edge, risking the billions fed into the economy being wasted, and the legacy of this support probably explains the year-on-year fall in significant financial distress.”
Ric Traynor, executive chairman of Begbies Traynor, commented; “Inflation has become a global issue, not just a domestic problem. The effects of increasing costs are now starting to take their toll on businesses and consumers alike. For the first time in more than a decade, inflation is the prime concern for businesses.
“This could mean that companies which have just been surviving, being kept alive only by government support, finally succumb to the inevitable.
“Additionally, consumer demand is likely to slow markedly as cost pressures pile up ahead of the anticipated increase in energy costs in October, and families reduce their appetite for spending accordingly. If these pressures take their toll on both corporate and personal finances, it could be particularly difficult in the latter quarters of this year.”
Notts based illegal waste operator and landowner prosecuted
A Nottinghamshire man has been handed down a 20-week suspended prison sentence for burning waste illegally in Newark, Nottinghamshire. The owner of the land on which the waste was burned has also been prosecuted and each has been ordered to pay costs of over £18,000.
The case against 61 year old Samual Hussan, of Beaver Cotes Close, Newark and 75 year old Frederick Hardy, of Corner Farm, Farndon, Newark, was held at Nottingham Magistrates’ Court on Wednesday 27 April 2022.
Hussan had admitted the offence at a previous hearing. He received a 20-week prison sentence suspended for 2 years, a 12-week curfew from 8pm-6am, was ordered to pay costs of £18,236.20 and a victim surcharge of £115. In addition, he was disqualified from being a director for 5 years.
At a previous hearing, the landowner, Frederick Hardy, admitted he had knowingly permitted the operation without the necessary environmental permit. He was fined £2,666 and ordered to pay costs of £18,236.79 and a victim surcharge of £170.
The court was told that Hussan had made a significant financial gain from operating the site. Operations at the site commenced in February 2018.
Hussan told officers from the Environment Agency that he had been paid £50 per tonne for the waste and that there were 300 tonnes of bales on the site.
However, officers discovered that waste on the site included road plainings, wood, plus construction and demolition waste. There were also at least 1,000 bales of waste which contained carpets, duvets and mattresses.
The court was told that it was estimated that Hardy had subsequently cleared the site at a cost in excess of £64,000 and removed the waste to landfill.
Newark and Sherwood District Council first received a complaint about the burning of materials on the site in March 2018.
Hussan originally denied burning waste on the site and that the majority of his activities had involved the grading of wood. He believed that exemptions from an existing environmental permit covered his activities.
Hardy admitted he had allowed Hussan to use the site and that he was aware of waste being burned. He had organised access to the site from neighbouring land and for the construction of a weighbridge.
The court was told that Environment Agency officers in May 2018 had de-registered 14 exemptions for the site on the basis that they posed a significant environmental risk.
A spokesperson for the Environment Agency said: “We hope this case will send a clear message that we do not hesitate to take action to protect the environment and bring perpetrators to justice.
These people operated the site without the required permit which, as well as undermining the regulatory regime, also had an impact on lawful waste operators.
We are actively targeting illegal waste activities across the country and would urge all those seeking to become involved in the waste industry to ensure they have the appropriate permits and authorisations in place before commencing their operations.
Businesses and householders should carry out checks to ensure that they are using legitimate companies to deal with their waste. To check if a waste carrier is genuine visit: https://environment.data.gov.uk/public-register/view/index.” Anyone who suspects a company is operating illegally can call the Environment Agency 24/7 on 0800 80 70 60 or report it anonymously to Crimestoppers on 0800 555 111.Demolition of former Cummins factory in Lincolnshire paves the way for mixed-use area
A major milestone in the development of St Martin’s Park, Stamford, has been met as demolition and clearance of the former Cummins factory commences.
South Kesteven District Council and Burghley have appointed Contractor GF Tomlinson Group to undertake the work and they began site set up last week, with welfare units placed on site. Demolition works will begin shortly and will continue for the remainder of the year.
The 14.7-hectare St Martin’s Park will include a designated commercial area; mixed-use area; retirement village; range of residential properties, including affordable homes; and areas of green and open space.
Kelham Cooke, Leader of South Kesteven District Council, said: “This high-quality, well-designed and sustainable development will preserve and enhance the setting of this part of Stamford.
“The important mixed-use development will bring significant benefits to the town and wider area, providing new employment opportunities and homes for the town and district.
“We are really pleased to have reached the next phase of this collaboration which supports our vision for the area and are proud to be creating a legacy for future generations, while protecting our strong heritage.”
As joint landowners, both South Kesteven District Council and Burghley Estates are committed to long-term investment and growth in Stamford while creating a balanced community that meets local housing needs.
Miranda Rock, Burghley House Director, said: “We are delighted to be taking important steps towards creating a development which will bring huge benefits to Stamford and the wider economy.
“We will ensure the St Martin’s Park development delivers sensitive and sustainable mixed-use amenities that work for the whole community.”
Planning permission for the site was granted in October 2021 with the decision notice being issued last month.
Business Lincolnshire announces return of Lincolnshire Manufacturing Conference
Business Lincolnshire are proud to announce the Greater Lincolnshire Manufacturing Conference 2022: De-risking for a Sustainable Future.
The fully funded conference, which is being organised in partnership with NatWest, exclusively serves the manufacturing sector within Greater Lincolnshire. The conference takes place at Kenwick Park Hotel, Louth, on Friday 20th May 2022. The annual event celebrates its fifth conference, in a welcome return following a three-year hiatus caused by the pandemic.
Greater Lincolnshire Engineering and Manufacturing (GLEAM) network are sponsoring the networking breakfast, which coincides with registration and an industry exhibition. This year’s theme focuses on ‘de-risking for a sustainable future’.
A programme of presentations and discussions will explore sustainable business opportunities, the practicalities of carbon capture and storage, insights into how to take the first steps towards net-zero, and more. Peer-to-peer problem-solving and knowledge-sharing workshops will take place throughout the day, providing time to discuss and unpick topics covered by the speakers.
The day’s events will close with the opportunity for delegates to attend site tours of local manufacturers Bottomley Distillers, Micronclean, and Wolds Manufacturing Services.
Cllr Colin Davie, executive councillor for economy at Lincolnshire County Council, said: “This conference plays a vital role in supporting the county’s manufacturing community. It provides opportunities to network, share ideas and seek out solutions to common challenges, and of course to hear about new developments from industry leaders. This is always an event to look forward to as we help this important sector thrive.”
To attend the event, delegates must represent manufacturing-based businesses, partnerships, sole traders, and registered charities, with a trading address located within Greater Lincolnshire. Due to anticipated high demand places are limited to one person per organisation. To find out more and book your ticket visit: https://www.businesslincolnshire.com/events/event-details/?id=3934&navigatedFromSearch=true
Independent retailers continue to provide new jobs and fuel economic growth, says report
The Shopify Economic Impact Report conducted by Deloitte has revealed how British independent retailers are continuing to fuel job creation and local economic growth, with exports helping UK merchants thrive despite macroeconomic headwinds.
Record numbers of UK independent retailers broke international borders in 2021, with exports from UK Shopify merchants reached £2.7 billion in 2021, up 43% increase from the £1.9 billion made through exports in 2020, as retailers turned their attentions to international growth.
Dave Linton, founder of Madlug, which donates a bag to a child in care for every bag sold to a customer, is continuing to expand overseas and credits the ability for small independent brands to forge a close connection to their customers. He said: “Once customers are connected to a brand’s mission and purpose, they are willing to continue spending with that brand, even in the face of inflation, rising living costs and international shipping charges. In the past year, we’ve seen strong sales to Europe, Canada and America and some sales also to Australia and Dubai. We have also been able to hire two more young people who have been through the care system themselves and add great value to our business as a result.”
Shimona Mehta, EMEA Managing Director at Shopify, said: “Innovative British businesses are creating jobs at a rapid clip despite the odds and continue to flex their entrepreneurial muscle: something that will be increasingly important as we navigate the cost of living crisis ahead. Not only does it underline the UK’s potential as a powerhouse for entrepreneurship, but the role that commerce is playing in driving economic growth and job creation.”
FSB welcomes plan to delay full EU import checks
Responding to the Government’s decision to delay the imposition of full EU import checks, which were set to take effect this summer, Federation of Small Businesses National Chair Martin McTague said: “Imposition of full import controls this summer would have meant yet another burden for small firms which are already wrestling with new trade rules and spiralling operating costs.
“This move will give them more time to prepare for future changes and reassess supply chains.
“Over the long term, the Government should do its utmost to minimise trade friction with regions all over the globe – increasing the threshold at which import tariffs kick in, and putting small business chapters at the heart of all new free trade agreements.”
Packaging business expands in Mansfield
AM Packaging (Mansfield) Limited has expanded with the letting of Unit 5 Anglia Way, Mansfield.
FHP Property Consultants secured the deal on behalf of Ash Bow Estates Limited.
The business was looking for larger warehouse premises in the local area.
Chris Proctor of FHP Property Consultants said: “It has been a pleasure dealing with AM Packaging with this deal requiring a real team effort in respect of the vacating occupier moving out and AM Packaging moving into the unit, which was all done within 24 hours of one another! I wish AM Packaging all the best with their new unit.”
Lee Childerley of AM Packaging said: “I’d like to take the opportunity to personally say a massive thank you to Chris Procter from FHP Property Consultants, for helping our team find our perfect premises to help continue our growth as a company.”
Firm fined £44,000 after poultry shed malfunction kills 27,000 chickens
A company that manages poultry farms has been fined £44,000 after a computer malfunction in a broiler shed ventilation system caused the death of more than 27,000 chickens.
Leicestershire County Council’s Trading Standards Service prosecuted Hudson & Sanders Limited after the birds died at a farm near Melton Mowbray.
The firm pleaded guilty to four charges under the Animal Welfare Act 2006 in a hearing at Leicester Magistrates Court on Wednesday (27).
Some 50,000 chickens were being kept in a large shed at Hose Lodge Farm in Colston Bassett when, on May 26, 2020, the systems that regulated air flow, vital for the welfare of the chickens, failed.
The court heard that inlets on the side of the building closed during a rest period for the birds in the afternoon, but another tunnel ventilation system failed to open creating a sealed unit.
On what was a warm day, the temperature within the shed rose rapidly.
The birds could not cool down because of the ventilation failure, causing them heat stress, suffering and death.
An alarm sounded when the temperature rose to 37 degrees and staff were alerted but council investigators said that should have been set to go off at 27 degrees.
At the time of the incident, the farm manager was on leave but still attended as he lived on the site.
A relief manager provided by Hudson & Sanders Limited, had left the site to take a break when the incident occurred.
By the time staff were able to get into the shed 27,249 of the chickens had died.
The council prosecuted the company for being negligent in its care of the birds, which were being farmed for their meat.
Trading standards also said the company had failed to ensure there were enough staff to look after the chickens and that they were not trained to the level they needed to be, which led to a situation where they didn’t know what to do in time.
The county council argued the offence was aggravated because an Animal and Plant Health Agency vet had visited the farm in November 2019 and raised concerns about there not being sufficient staff or a ventilation plan.
District Judge Nick Watson described the May 26 incident as a disaster and said those birds that survived would also have suffered.
He fined the company £44,000 and ordered it to pay the county council’s costs of £12,634.83.
In mitigation, solicitors for the defendant said the company, which managed poultry operation on behalf of the farm’s owner, regretted the incident.
The court heard Hudson & Sanders Limited had no previous conviction for animal welfare offences and had an otherwise excellent reputation in the industry.
After the hearing, the county council’s head of regulatory services, Gary Connors, said: “This was an awful but thankfully rare incident in terms of the scale of unnecessary suffering. However, we hope the level of fine prompts businesses operating in this sector to review their operations to ensure they have adequate staffing and procedures in place to avoid such a distressing incident happening again.”
City firms urged to take advantage of free 30-day electric van trial
Businesses are being invited to test-drive a new electric van before taking a fully-funded one-month trial.
An event is being held next month in Nottingham where a range of vehicles will be on show for firms of any size, from the public or private sector, to consider for their fleet.
Organised by the City Council as part of the Electric Van Experience (EVE) project, this will take place outside the Arc Building on the NG2 Business Park, Enterprise Way, between 11am and 3pm on Thursday 5 May.
Staff from the Transport team will be on hand to explain the benefits of an electric van, answer any questions and take interested businesses out for a 15-minute drive to help them decide if they’d like to sign up for a 30-day vehicle loan.
Use of the van is free with a nominal administration fee dependant on the size of the company. Voluntary sector and charitable organisations are exempt from this.
Funded by National Highways and delivered as part of the authority’s Workplace Travel Service, EVE was launched a year ago and enables companies to see how making the switch to electric vans could be the right move financially and environmentally.
Councillor Sally Longford, Deputy Leader and Portfolio Holder for Energy and the Environment at Nottingham City Council, said: “With the ban on the sale of new petrol and diesel vehicles brought forward to 2030, we want to support businesses to plan ahead. Electric vehicles are the future but we understand that making the switch is still a big decision.
“Since launching in 2021, the scheme has proved popular and we’ve loaned vehicles to more than 70 businesses. We now want to ensure that more companies have the opportunity to try it out and see if this is for them.
“The idea is for firms to experience the benefits of an electric van for themselves before making any commitment. This isn’t available through dealerships or manufacturers, so it’s a unique opportunity and key to addressing the barriers that businesses face with electrifying fleets.
“Not only will they be able to experience first-hand the cost savings in maintenance and operation, but also the improved driving experience, giving them confidence to go ahead and make their fleets cleaner.
“As a council we’ve long been committed to improving air quality in the city, and this scheme will further help to reduce harmful emissions from the city’s and region’s roads.”
Providing the premises are suitable, businesses who take up the offer will be able to have a charge point fitted at no cost and will be invited to take advantage of the services offered by Nottingham Electric Vehicle Services (NEVS).
Andy Jinks, Midlands regional director for National Highways and funders of the Electric Van Experience, said: “We’re working with councils across the country to encourage businesses to make the switch to electric vehicles and we expect many more to start using electric vehicles when they experience the savings possible.
“We’ve invested £2.69 million in this initiative with Nottingham City Council – a key example of how we are using our air quality fund to benefit the environment and communities around our roads, as well as the people travelling and working on them.”
Businesses interested in the 5 May event should contact the Transport team at transport@nottinghamcity.gov.uk so an accompanied test drive can be scheduled in advance.
