HC Deb 27 November 1973 vol 865 c203
17. Mr. Meacher

asked the Secretary of State for Employment what proposals he has for amending the Redundancy Payments Act.

Mr. Dudley Smith

The statutory redundancy payments scheme is under review and my right hon. Friend will be inviting views on the proposals which emerge from it.

Mr. Meacher

Is it not a gross anomaly that a man who is required by his employer to work overtime for 17 hours a week, as a constituent of mine was required to do—a requirement that was not written into his employment contract—cannot obtain redundancy payment under the Act even if it is compulsory overtime? Should not an employer who requires overtime be prevented from escaping his redundancy payments responsibilities by not writing compulsory overtime into the contract?

Mr. Smith

I know of the hon. Gentleman's concern on this issue. It is one which ought to be taken into account in the review. There is some pressure for average earnings over the previous 12 months to be used as the basis of calculations. There is some merit in that, but it would be administratively very complicated to operate and could also prove to be unfair to employees who were on short time before the redundancy occurred. These are matters which must be considered by the review.

Mr. Simeons

Will my hon. Friend consider the effect of redundancy payments on small businesses when this matter is being reviewed?

Mr. Smith

Yes, all these matters will be taken into account. I have no doubt that the present scheme has many advantages, but the extent to which it achieves its objectives and the question whether changes are necessary are matters for detailed consideration.