HC Deb 13 November 1967 vol 754 cc1-2W
10. Mr. Ridley

asked the Minister of Labour if he will seek to amend the Redundancy Payments Act so that redundancy pay is not payable to men transferred from one company to another within the same ownership, and who have continuity of employment.

Mr. Hattersley

Redundancy pay is not payable when a man is re-engaged by an associated company within the meaning of the Act. My right hon. Friend has no present plans for amending the Act in this respect.

9. Mr. Ridley

asked the Minister of Labour if he will seek to amend the Redundancy Payments Act so that redundancy pay is not payable where employees who have been discharged are re-employed by the same firm within a short time.

Mr. Hattersley

No. It would be a departure from the basic principles of the Act to deny compensation to em- ployees who are dismissed due to genuine redundancy.

32. Mr. Mawby

asked the Minister of Labour if he will introduce legislation to provide for a minimum qualifying period of unemployment before redundancy benefit becomes payable.

Mr. Hattersley

No. The Redundancy Payments Act was designed to provide immediate compensation for the loss of security which redundancy almost always entails, irrespective of whether this leads to any unemployment. The principles upon which the Act was based were accepted during the passage of the Bill, and I can see no reason for departing from them now.

43. Mr. Peter Mills

asked the Minister of Labour if he will seek to take power to pay redundancy benefit out of the Redundancy Fund when an employer is faced with the choice of paying redundancy pay to his employees or bankruptcy.

Mr. Hattersley

My right hon. Friend is already empowered to pay redundancy compensation direct from the Fund when an employer is unable to meet his obligations under the Act. An employer likely to find himself in this position would be well advised to consult his local employment exchange.

Mr. Rose

asked the Minister of Labour whether he will set up machinery to safeguard the interests of the public with regard to the payment of redundancy benefit by agreement between employer and employee.

Mr. Hattersley

I would refer my hon. Friend to the Answer I gave earlier this afternoon to a similar Question from the hon. Member for Harrow, West (Mr. John Page).