21 September 2016
Employment law figures indicate light at the end of the tunnel for redundancies
A leading HR and employment law firm has reported a reduction in the redundancy trend in the North-east of Scotland.
Since 2014, an estimated 65,000 oil and gas jobs have been lost in Aberdeen and Aberdeenshire. This figure is expected to rise by the end of 2016, with the total number of job losses within the UK oil and gas sector estimated to reach 120,000*.
The effects of the downturn are evident across the North-east, with empty office buildings now a familiar sight in Aberdeen.
As well as these worrying developments, figures from the Office for National Statistics (ONS) show that the number of people claiming jobseeker’s allowance has risen almost a startling 54% in Aberdeenshire and just over 24% in Aberdeen in the past year.
Despite this, new statistics from leading Scottish HR, employment law and health & safety firm, Empire, suggest that the region may be showing signs of recovery.
The figures recently released by Empire, which is based in Aberdeen, London, Inverness, and Glasgow, indicate that job losses may be slowing down in the North-east, as the number of calls made to Empire regarding redundancy reduced by 5% in the first six months of 2016.
Since the oil downturn began, calls from employers to Empire regarding redundancy increased dramatically from 9% of all calls to the Empire advisory centre in 2014 to 22% in 2016.
Steve Cook, chief executive of Empire, said: “For many companies, making redundancies would have been an entirely new and foreign experience. It is a process that employers need to be extremely careful with, as procedures that are made without expert HR advice and guidance can result in costly tribunals.
He added: “The feeling amongst Empire clients seems to be that the worst is now over and there is a light at the end of the tunnel. Many employers have reorganised their businesses and are now looking forward to the future.”