Increasing costs and a lack of available credit is leading many small firms to consider cutting jobs, it has been claimed.
In news which might be of interest to business insurance customers, the Forum of Private Business (FPB), states that it has experienced a 68 per cent increase in employment calls to its legal helpline, with 12 per cent of the total relating to redundancy situations.
Matt Goodman, the FPB's policy representative, claims that the problems caused by trimming a workforce are more felt more acutely by firms with fewer than ten employees.
He said: "The FPB is urging business owners to follow the correct procedures in order to minimise the pain for both employees and businesses."
This is vital as the current economic downturn means it is "inevitable" job cuts will have to be made, Mr Goodman added.
In related news which might be of interest to business insurance customers, the Yorkshire Post recently reported comments by Kristina Grimes, a contestant on The Apprentice, who urged small firms not to get back on marketing during the credit crunch.
