Reduce redundancy pay qualifying period – TUC - Money - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Reduce redundancy pay qualifying period – TUC

Reduce redundancy pay qualifying period – TUC

Category: Money

Updated: 14/04/2009
First Published: 14/04/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Government has been called upon to reduce the qualifying period for statutory redundancy pay (SRP) by the Trade Union Congress (TUC.)

Currently, employees aged 16 or over have to work for two years for the same employer until they are entitled to SRP, meaning the youngest age workers can benefit from redundancy pay is 18.

The TUC believes the qualifying period should be reduced to 12 months - a step which it says could benefit more than 20 million employees across the UK.

More than three million employees would be entitled to SRP for the first time under the proposed system, while a further 17 million would see their existing entitlement increased.

Brendan Barber, general secretary of the TUC, said that in light or rising unemployment, people who find themselves out of work need all the help they can get with redundancy pay, retraining and personal advice.

"Many decent employers, especially those that recognise unions, already offer their staff more generous redundancy packages than the statutory entitlement," he added.

The £350 SRP limit should also change, said the TUC, rising to £500 a week to ensure employees are properly compensated when they lose their jobs.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Brits overspent on Christmas by £3.8bn

The festive season has well and truly come to an end, and the January Blues have taken over. This has no doubt been partly brought on by excess spending over the Christmas period – and considering how much people overspent, it’s little wonder.

Have your financial habits changed?

2016 was certainly a turbulent year, and it's had a notable impact on household finances. Indeed, research shows that recent events have influenced the way over half of UK respondents manage their finances, with many becoming more cautious.

Kids got £180 in pocket money in 2016

New research has revealed that kids aged 4-14 received an average of £180.44 in pocket money over the last year, which was topped up by an additional £47 on average received in cash over the Christmas period.