CBI suggests alternative to redundancy

Posted 07/07/2009

The CBI has suggested revisions to existing employment law, which it believes could safeguard jobs in the UK.

According to the business group, Britain is now over the worst of the recession, but the threat of redundancy still hangs over many people.

Therefore, it has devised the Alternative to Redundancy (ATR) scheme, which would see workers receive an allowance funded by their employer and the government for a set period of time.

They could then return to work as soon as the business begins to pick up, which means firms can retain skilled staff and employees can enjoy greater job security during a recession.

John Cridland, deputy director general of the CBI, commented: “Businesses will be more able to cope with sharp drops in demand and prepare for recovery.”

He added that the ATR scheme would offer “improved financial support” to employees and ensure “a door is kept open for six months”.

Official figures currently show that unemployment in the UK is at a 12-year high of more than 2.25 million.