TUC warn on older workers’ redundancy pay

Older workers could face reduced redundancy payments, when new age discrimination regulations come into force next year, the Trades Union Congress has warned.

Employees aged over 41 who lose their jobs currently receive higher statutory redundancy payments than younger workers with the same length of service.

The TUC has expressed concerns that the government may reduce awards to the levels currently paid to younger workers.

Currently workers over the age of 41 receive one and a half week’s pay for each year of employment if they are made redundant. However, employee’s aged between 22 and 40 receive a week’s pay per year of employment and those aged between 18 and 21 receive half a week’s pay.

However, this will not be possible, due to new age discrimination regulations, due to come into force in October 2006.

The TUC said that the fairest solution would be to increase the redundancy pay levels of younger workers to match the rate for older employees.

TUC General Secretary Brendan Barber said: “European rules to outlaw age discrimination are welcome. Unions have campaigned for this for years. Older workers know just how difficult it can be to find jobs, even when they combine years of experience with up to date skills.

“But it would be a real shame to spoil this advance, by levelling down statutory redundancy payments so that workers of all ages get the same lower rate. It sends the wrong signal to employers who may feel free to cut other benefits to their older staff in the same way.”


Related UK National News Stories
Click here for the latest headlines.

20 August 2015
16-To-18 Year Old NEET's At Record Low
The number of 16 to 18-year-olds not in education, employment or training – otherwise known as NEET's – is at a record low. The figures show an 11,000 fall in the number of 16-18 NEET's, since 2000, when consistent data collection began.
26 September 2008
Funding Boost Of £455m For Equal Pay Claims
Funding of £455m will be awarded to councils in England to allow back payments relating to thousands of equal pay claims from women workers. In a move to speed up long-term commitments to achieving equal pay for all council workers, local government minister John Healey gave the go-ahead to 34 councils to raise the money through capitlisation.
15 April 2005
Workplace racism is ‘damaging’ careers, TUC claims
Racism in the British workplace is “damaging” the career prospects of many black workers, the Trade Union Congress (TUC) has claimed. The TUC said that black workers get less training opportunities, although they are often better qualified than their white counterparts.
15 October 2003
Employment falls by 9,000 over last quarter
The employment rate has fallen by 9,000 over the last quarter, with unemployment remaining unchanged, according to the latest labour market research. The labour market trend assessments this month show that the employment rate is levelling off, while the unemployment rate "may still be falling slightly".
22 November 2011
Pay Commission Slams 'Victorian Era' Inequalities
The High Pay Commission has published a report on Tuesday, which has found "spiralling" high pay is creating inequalities "last seen in the Victorian era".