More people seek legal advice on employment issues as recession takes its toll

Data from home insurer LV= reveals a sharp rise of 21% in calls to its legal helpline for advice. A quarter of all calls relate to employment issues such as redundancy - a rise of a third compared with 2008.   

Further research conducted by LV= finds that consumers are increasingly seeking legal advice in the recession, with up to one million people having to take legal advice on employment issues in the last 12 months. Current unemployment numbers stand at 1.92 million people in the UK.

Almost half of the people who have sought legal advice about an employment issue in the last year (47%) cited the recession as the cause of their problems. Common complaints included being asked to work reduced hours, take a pay cut or being made redundant.

LV='s analysis of employment related calls made to its legal advice helpline in the first quarter of 2009 shows that employers were acting illegally in one in three cases. In addition to the helpline, the legal cover that LV= offers as part of its home insurance will pay solicitors fees of up to £50,000 in the event of a case being pursued, with any payouts won being unaffected.

Almost half of the people questioned in the LV= research (48%) say that the company they work for has made redundancies since the onset of the credit crunch. A quarter (26%) also say that hours have been cut and the same number say that pay rises have been cancelled.

The research by LV= reveals that potentially over half of all UK adults (55%) have had to take some form of legal advice in the past, with the majority opting to speak to a private solicitor as the first port of call despite the high costs involved. The average cost of such advice is £708 per case.

John O'Roarke, managing director of LV= home insurance, commented: "The statistics from our helpline show that an increasing number of people are looking for legal help because of employment problems caused directly by the recession. The issues are far ranging, covering redundancies, a reduction in hours and pay, or changes in employment contracts.

"However, as our wider research has indicated many people still go to a private solicitor as a first port of call, which is costly. If people think they may need legal help, our advice is to ensure they opt to include it with their home insurance.”

• Delicious
• Digg
• reddit
• Facebook
• StumbleUpon

Sign up for free news e-mailer

House price search

Enter your postcode here to find out how much your property is worth, based on Land Registry data.