Most employers do not understand redundancy laws, making them liable for penalties

More than a third of employers (37%) are considering making staff redundant over the next six months but according to law firm Pinsent Masons, 28% were not aware that failure to consult employees appropriately could result in a penalty - meaning they must pay 90 days salary to all affected staff.

Almost half (48%) did not anticipate any problems with their redundancy programmes.

Tom Flanagan, employment partner at the firm, said: "Companies are leaving themselves open to claims from employees and unions if the redundancy process isn't carried out correctly.

"These figures show there is a level of complexity surrounding collective redundancy exercises that many businesses haven't got to grips with."