Administrations and the possibility of redundancy has become under the spotlight in recent weeks but a public-private sector partnership has been working to help minimise stress for those made redundant as a consequence of insolvency and ensure they are able to find alternative employment as quickly as possible.
R3, the trade body for insolvency professionals, Jobcentre Plus and the Insolvency Service have released a report which shows that over 3,873 people in the South have been helped by a public sector and private partnership designed to provide ‘early warning’ of pending redundancies.
Under the joint initiative, Insolvency Practitioners are encouraged to warn Jobcentre Plus and the Insolvency Service as soon as they think there are likely to be more than 20 redundancies. This enables Jobcentre Plus to deploy their resources in the best way to help those individuals find new employment, claim benefits and access training.
Southern Regional Chair of R3, James Stares, said:
“Unfortunately, while an IP does everything they can to save as many jobs as possible, it is not always feasible to keep all jobs if the business is to continue trading, consequently the insolvency profession sees the human cost of business failure on a daily basis. Employees face the unwelcome prospect of having to find new employment at a confusing and stressful time. Whilst the economic climate remains uncertain it is even more important that insolvency practitioners are able to work with expert government agencies to ensure that those facing redundancy are given as much support as possible at a very distressing time.”
Labour MP Phil Wilson, who came up with the idea for the initiative, added:
“Losing a job is one of the most difficult situations people can face in their lifetime. It is essential that they receive the correct information at the right time to help them find new employment. The Memorandum has already helped support thousands of individuals and with many businesses continuing to struggle, it will play a key role for some time to come.”
Sarah Cole, Jobcentre Plus comments:
“Having a greater understanding of the critical factors that can contribute to a business becoming insolvent has been a great source of intelligence and enables Jobcentre Plus to plan our response accordingly, for example understanding quarterly rent days matched with intelligence on sectors has helped to anticipate a possible increase in redundancies from the retail sector over the Christmas trading period.”
Jane Young, The Insolvency Service, comments:
“People who lose their jobs through redundancy face a stressful and confusing time. Advance notice of insolvencies from insolvency practitioners enables The Insolvency Service to plan its resources so that claims can be assessed quickly and efficiently.”
