§ Mr. Ralph Howellasked the Secretary of State for Employment how redundancy payments are made in the case of a bankrupt firm.
§ Mr. John FraserA statutory redundancy payment becomes due when an employee's contract of service is terminated in certain specified circumstances. If the employer is unable to make this payment because he is bankrupt, or for any other reason, the employee can make a claim for the amount due to my Department. He will then receive his statutory entitlement direct from the Redundancy Fund, provided my right hon. Friend is satisfied that the employee cannot obtain this entitlement from the employer within a reasonable period of time. My right hon. Friend would then take steps to recover on behalf of the fund the employer's share of any such payment made.
§ Mr. Ralph Howellasked the Secretary of State for Employment how many people received redundancy payments in 1970, 1971, 1972, 1973 and to date in 1974; and how much has been paid out in each year.
§ Mr. John FraserThe following information relates to the number of payments made from the Redundancy Fund in respect of redundant employees together with the total cost to the fund during each period. The total amount received by redundant employees will be approximately double the figure shown because of the direct contribution made by employers.
Calendar Year Number of Payments Amount 1970 275,563 72,541,000 1971 370,306 108,273,000 1972 297,120 97,513,000 1973 176,919 66,573,000 1st January 1974–30th September 1974 (latest figures available) 124,408 46,821,000