Redundancy Payments Cap

EDM number 1333 in 2003-04, proposed by David Crausby on 09/06/2004.

That this House notes that the current formula for calculating redundancy payments is based on the Redundancy Payments Act 1965 and needs urgent reform; believes that the outcome of this statutory formula results in parsimonious payments for those unfortunate enough to suffer redundancy and further reinforces the notion that it is easy and cheap to sack UK workers; welcomes and acknowledges the fact that the Employment Relations Act 1999 made provision to adjust the payments formula, allowing for annual increases in relation to inflation but regrets that, too often, redundancy payments are too small and give companies the easy option of disposing of UK labour; and calls on the Government to link this payment formula to average earnings and annual average appreciations in wages, to ensure that payments are sufficient and that companies seek innovative alternatives to the easy option of large-scale redundancies.

This motion has been signed by a total of 46 MPs.