CALLS about redundancy to a Manchester helpline have more than trebled in a month as beleaguered bosses gear up to axe staff during the downturn, it emerged today.

Peninsula Business Services, which advises thousands of SMEs on employment, health and safety and tax laws, said it was being bombarded with requests for guidance as company chiefs draw up redundancy plans.

In a further indication of the country's deteriorating economy, Peninsula said it received 1,062 calls a week on the subject in June but a staggering 3,368 a week during July.

The largest number came from manufacturers, followed by bosses of construction firms, hotels and hospitality businesses and retailers.

In previous months there had been an increase in calls regarding temporary lay-offs and shorter working hours, but there has been a recent shift to calls about permanent job losses.

Peninsula, which is based on New Bailey Street, advises nearly 23,000 companies and employs more than 700 staff across England and Ireland.

Mr Done said today: "Employers must ensure they approach redundancy in a sensitive way and ensure they follow regulations.

"Bosses must also keep their employees in the loop.

"Many companies are feeling the financial strains that the credit crunch has brought and are inquiring more and more about the redundancy process, so they are aware of their responsibilities and don't end up in employment tribunals."

News of the dramatic surge in calls to Peninsula came as a report by the manufacturers' organisation the EEF showed firms in the north west are increasingly feeling the chill from the slowing economy.

The survey, carried out with accountancy firm Grant Thornton, found economic pressures were starting to take their toll on manufacturers, with employment and investment intentions going into reverse.

The EEF urged the government to bring forward policies to help businesses, minimise the prospect of job losses and reduced investment, and pave the way for an eventual upturn.