Revise redundancy cap, Prospect tells MPs

Prospect has called on MPs to revise proposals to cap redundancy compensation for public sector workers.

The Enterprise Bill, which provides for regulations that would restrict redundancy payments for public sector workers, will have its second reading in the House of Commons on Tuesday, 2 February.

Prospect believes the Bill goes beyond the mandate the government sought in its general election manifesto and explains why in a briefing sent to all MPs today. The proposals also treat some groups particularly unfairly and will cause practical problems for employers.

Garry Graham, Prospect deputy general secretary, said: “The Conservative party manifesto promised to cap compensation for the “best paid”, but people on very moderate salaries will be deeply affected by this Bill.

“The proposals, which were supposed to hit high earners, instead target those with long service who are made redundant at particular ages.

“The bill’s scope is also far too wide and extends to employees working for companies run by private sector organisations who would never consider themselves to be “public sector” workers.”

Prospect’s briefing acknowledges the general election manifesto commitment to implement a cap. But the union calls for amendments to ensure it operates fairly and in line with that commitment.

Graham added: “The provisions in this Bill would rip up agreements on redundancy terms between Prospect members and their employers. This is no way to treat staff or handle industrial relations. It also ties the hands of employers who are being asked to implement significant cuts to their workforces in the period of the spending review.”