July 08, 2010
The impact of the government’s spending cuts within the nation’s public sector became ever more apparent this week as a maximum redundancy limit was set for civil servants.
Under new government proposals, compulsory redundancies within the sector will be limited to 12 month’s salary as a maximum pay-off, instead of the current six year maximum, and voluntary redundancies will be set at 15 months. The legislation will not however affect accrued pension rights.
While the government admitted that such measures have come about ‘reluctantly’, the “non-negotiable” compensation scheme, announced by Cabinet Minister Francis Maude, has been blamed on the dire financial state of Britain’s economy and public debt.
Unions have openly accused the government of “bully boy tactics” following the move, warning that strikes and walkouts will invariably follow such a redundancy slash. Particular disgust has been raised over plans to amend a 1972 law which dictates that such changes need union approval before being enforced.
"Around 600,000 staff are affected, of whom tens of thousands potentially face redundancy through no fault of their own,” Dai Hudd, Deputy General of civil servants union Prospect, told the Guardian.
“The government wants to rip up their rights in a way that would do justice to King John, but it will not work. These rights are protected by law and bully boy tactics will not get round that fact.”
However, few civil servants have actually received the full six-year payout. Under current schemes, redundancy payments have averaged £60,000, much larger than the average £21,000 annual salary.
“What is on offer now is simply untenable and completely out of kilter with what is on offer in the wider public sector and the private sector,” added Mr Hudd. "Our ambition now is that a negotiated, sustainable and practical long-term successor to the existing scheme can be agreed – one that is flexible and appropriate for current economic climate and also fair for lower paid workers."
While civil servants have become the first victim of the strongest austerity measures for generations, redundancies could become common place across the vast variety of sectors working in the UK.
If you feel that you’ve been unfairly targeted for redundancy, or have any other employment law queries, speak to your local solicitor today and discuss your predicament.
