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Older staff set for lower redundancy
David Turner ,
June 30, 2003
UK - Older workers
who lose their jobs will receive lower redundancy pay than at present
under plans drawn up by the government.
Age campaigners have
attacked the proposal as another blow for the beleaguered older worker,
although the proposal forms part of the forthcoming law on age
As the law stands,
employees aged 41 and above must receive payment of at least a week and a
half pay for every year of service above the age of 41 with their
employer. Under the new proposal, that payment would be only one week for
each year, which most employees aged under 41 must receive by law if they
are made redundant.
The proposal is part
of government provisions to put the age discrimination clauses within the
2000 EU employment directive into UK law. The proposals are set to be sent
out for consultation this week.
head of public affairs at Age Concern England, said: "Many over-50s
find it impossible to get back into the workplace after losing their jobs
and are unable to build up adequate pension contributions."
The employment rate
among the over-50s is much lower than for younger workers.
But even though the
plans would save millions of pounds for business, David Yeandle, of the
Engineering Employers' Federation, was unenthusiastic. "I would have
preferred it if they'd left well alone as any change will inevitably cause
complications for employers," he said.
Many businesses pay
more redundancy money than their statutory obligation, but tend to use the
law as a benchmark for setting their payments.
organisations have in the past shown little or no interest in such a
levelling-down of redundancy terms.