The number of people claiming unfair dismissal is to increase, it has been claimed.
According to Citizens Advice Bureau (CAB) spokesperson Laura Burnell, the organisation's network of offices saw inquiries rise by 18 per cent over the last three months of 2008 compared with the same period a year before, the Guardian reports.
She added that the CAB expects this figure to rise further.
Meanwhile, Rachel Head, a CAB adviser in Dudley, said that a common tactic employed by firms was telling staff that they faced only a temporary layoff, when in fact there was no chance of them being re-employed.
This saves companies redundancy pay and compensation in lieu of notice, the expert suggested.
She went on to comment: "We are inundated [with dismissal inquiries] and employment is now our third biggest inquiry area, after debt and benefits."
Recently, specialist insurer Hiscox reported a threefold increase in insurance claims made over the last quarter by firms in relation to unfair dismissal cases.