The TUC has asked the Government to reduce the qualifying period for a redundancy payment from two years to one year. At present, no employee qualifies for redundancy payment unless they have been continuously employed for a minimum period of two years.
This often confuses employers because, an employee dismissed with between one and two years’ service can still claim his dismissal was unfair, despite not qualifying for a redundancy payment.
Meanwhile, a private members’ bill, which seeks to link statutory redundancy pay to average weekly earnings, has passed its second reading in the House of Commons. At present, redundancy pay can be limited to £350 per week. Once again, it remains to be seen whether the bill will receive the Government support necessary to become law.
