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Simply Personnel
Newsletter, August 2009 |
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| CBI urges adoption of alternative to job losses |
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The CBI is urging the Government to adopt an 'alternative to redundancy' scheme, which it claims will stem rising unemployment. The plan is aimed at companies who have held off making redundancies, but are starting to run out of money to pay wages.
The proposal is that staff would not work for up to six months while being paid a weekly allowance, equivalent to double to the Jobseekers Allowance of £64.30. This sum would be co-funded by employers and the Government. Employees would be able to continue looking for work, and the employer could take them back if things improved. If business did not pick up, the staff could be made redundant after six months, and would not have lost any rights to redundancy pay.
The CBI argues that there would be no extra cost to the Government, but the TUC General Secretary, Brendan Barber argued that it was an "inflexible and underfunded scheme" which was "not fit for purpose".
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