HC Deb 20 December 1965 vol 722 cc361-2W
Mr. Owen

asked the Minister of Labour, (1) if he is aware of the anxiety of small employers about meeting their obligations under the Redundancy Payments Bill; if he will take steps to cover their liability by introducing some form of insurance contributory scheme under Government auspices: and whether he will make a statement.

(2) if he is aware that some small employers in the clothing contractors section of the industry are having to continue working when aged over 70 years, because of redundancy payment obligations; what consideration is being given to this problem, with a view to taking steps to relieve their anxiety; and whether he will make a statement.

Mr. Gunter

It was particularly with the problems of small employers in mind that provision was made in the Act for the Redundancy Fund to bear over 70 per cent. on average of the cost of redundancy payments. The balance of cost borne by the employer will at most be 6⅔ weeks' pay for an employee with 20 years service or more and will be allowable as a business expense for tax purposes. I understand that it is possible for small firms to insure against liability for payments arising from the death or retirement of the employer. A scheme of this kind has been arranged by the National Federation of Building Trades Employers.