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Business rejects claims for improved redundancy packages

30/01/2009

The Confederation of British Industry (CBI) has rejected union demands that companies increase redundancy packages.

The Trades Union Council (TUC) had asked for the basic minimum weekly amount paid as statutory redundancy pay to be increased to £500.

However, business leaders are not keen. Katja Hall, CBI director of employment policy, said she understood why the TUC would call for larger payments.

"But raising the weekly rate for redundancy payments will put even more jobs at risk by increasing the financial pressure on distressed businesses at a critical time," she explained.

TUC general secretary Brendan Barber said the limit should be raised "to reflect more closely the real cost to the individual of losing their job".

He did, however, welcome the increase in the amount of an employees earnings - from £330 to £350 – that will count towards redundancy pay.

 

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