The credit crunch has led to a rise in the number of Scottish employers seeking advice on how to sack their staff, lawyers have reported.

Law firms across the country are organising special seminars to advise employers on the correct procedures for making redundancies amid fears that more job losses could be on the way.

Graham Paul, employment law partner at Dundas & Wilson, said: “We're increasingly being asked for redundancy advice as well as advice on restructuring options and potential alternatives to redundancy.”

Employment lawyers have said that managers, especially those from small companies, may have limited experience of coping with an economic situation like this and could fall foul of employment law if they fail to follow proper procedures.

Robert King, an employment partner with HBJ Gateley Wareing, said: “The credit crunch is biting hard and, as a result, there are far more businesses facing up to the reality of the current economic climate.

“Employers planning redundancies should be on red alert of falling foul of employment law.

Allianz, the insurance group said that in the past month Lawphone, its legal helpline, received a record number of calls inquiring about redundancy. Ian George, its senior solicitor, said: “It clearly reflects the current economic environment.”

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