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Unfair dismissal claims have increased by 12,000 over past year, says Acas

The economic downturn has led to a 22% rise in unfair dismissal claims.

Data released by Acas shows over the past year the conciliation service has received 55,000 unfair dismissal cases - an increase of almost 12,000 from the previous year.

In light of the findings, employers have been warned to tighten up their policies and procedures to mitigate the risk of disgruntled staff trying to take them to court.

Nick Squire, partner in the employment, pensions and benefits team at Freshfields Bruckhaus Deringer, said: "At a time when many people are losing their jobs, the difficulty of finding re-employment is prompting an increase in the number of disputes following redundancy. Cases of alleged whistle-blowing and discrimination are also on the rise. In the UK, damages linked to these types of claims are uncapped, which makes it tempting for employees to give it a try even if they do not have genuine cause to do so.

"In light of these increased risks, it is important for employers to take steps to minimise the possibility of claims being brought against them by ex-employees, particularly when these are not justified.

"Employers should ensure their compliance policy, termination processes and internal control and investigation policies are up-to-date and effectively enforced. In-house legal teams need to stay close to key business lines and work effectively with HR.

"Crucially, organisations must communicate both internally with employees and their representatives and externally with unions, regulatory/local authorities and the press. And in the event that a redundancy situation is necessary, employers must be careful with selection procedures and make sure that they carry out consultations properly."