Coronavirus: Redundancies increase five times as pandemic jobs rise

The number of companies that the government informed in June about plans to cut 20 or more jobs was five times higher than in the same month last year, figures obtained by the BBC.

A request for freedom of information shows that in June, 1,778 companies said they intended to cut more than 139,000 jobs in England, Wales and Scotland.

As of June 2019, only 345 companies had plans to cut 24,000 jobs.

The cuts came as coronavirus drained more than a quarter of the UK’s economic output.

The figures provide an insight into the increase in outbreaks announced since coronavirus devastated the UK.

Airbus, Royal Mail, the airport service group Swissport, HSBC, Centrica and the Restaurant Group, owners of Frankie and Benny’s, were among the companies to announce redundancy plans in June.

Companies planning to lay off 20 or more staff must inform the government by submitting a form called an HR1 Advance Notice of Redundancy.

The number of these forms submitted to the Insolvency Service shows a steep increase in the number of companies planning to cut staff.

‘It’s really annoying and stressful’

William Bird, 27, had worked as an assistant producer at an event agency in London that creates customized experiences for major markets.

He was furloughed in April, and then at the end of June he was told he was fired after four years with the company.

“Unfortunately, members of the public at the moment do not feel safe attending events … so at the end of June I was told that my company had done everything to keep me going, but due to the lack of work that came in. , they do not have the financial support to keep me going, “he told the BBC.

Mr Bird said it was a “difficult year in general” as his mother died of cancer in lockdown a few weeks ago.

“It’s very overwhelming and stressful. I’m gone from the tragedy in the family, looking for work, and at the end of August I’ll have to move out of the flat I rented in London with my girlfriend because we can no longer afford it, “he said.

He says he only received three weeks’ severance pay because he was on contract roles in his first year with the company. And he is puzzled that his month of announcement in July was paid at the furlough rate of 80%, instead of the full salary mentioned in his contract.

The only consolation for the situation, says Mr Bird, is that his company did not want to let him go: “They told me that this was not performance-based at all, and that they made difficult decisions for the future of the company, hoping that after “Once the sector was restored, they would gladly offer me my job back.”

The figures for May and June show a substantial increase from the same months last year, and from March and April, when coronavirus screening began.

Tony Wilson, director of the Institute for Employment Studies, said: “I would expect it to be bigger again in July and August, as there was a wave of companies firing in the first week of July. and the first week of August.

“I think it is now unforgettable that the redundancy numbers will be higher than they were at the height of the last recession in 2008.”

Companies including WH Smith, Dyson, Dixons Carphone, John Lewis, and Casual Dining Group have all recently filed lawsuits, and there has been an increase in requests for redundancy advice.

Adding the total number of layoff plans shows a similar picture of stunted employers cutting staff.

Although the figure in June excludes information from 79 companies, which was not available when the figures were compiled, it shows a steep increase in the number of positions considered for redundancy.

The total number of employers who make redundancies will be higher than these figures, because companies that lay off less than 20 jobs at one “establishment” do not have to report to the government.

However, employers often end up with fewer redundancies than the original number they inform the government.

Consultation process

The dismissal process takes time. It includes a consultation period of a minimum of 30 days for 20 employees and more, and 45 days for 100 or more staff.

This helps to explain why official redemption figures collected by the Office for National Statistics have not yet shown a significant rise.

In Northern Ireland, HR1 forms are submitted to the Northern Ireland Statistics and Research Agency and are not included in these figures.

In response to the BBC’s findings, the Department for Employment and Pensions pointed out the measures it has put in place to target those seeking employment.

“Across the country, our Jobs Plan will give the company the confidence to recruit and retain workers … and – through the Kickstart scheme – create hundreds of thousands of new, subsidized jobs for young people,” a spokesman said.

• CARE HOMES: The forgotten frontline?
• FORT SALEM: From what escapism? Binge-watch the new series

Have you been fired in recent months because of the pandemic? Share your experiences by email [email protected].

Please enter a contact number if you are ready to talk to a BBC journalist.