Redundancy Compensation (Hansard, 23 December 1981)

§ Mr. Peter Morrison

The information is as follows(a)A registered dockworker whose name is removed front the register of dockworkers may receive compensation of £1,950 after one year's service: of £6,000 after 10 years' service; and of £10,500 after 20, 30, 40 or more years' service. A special supplementary scheme operated during parts of 1981. The Dockworkers (Regulation of Employment) (Amendment) Order 1967 Clause 3(2)(e) provides that the National Dock Labour Board may pay compensation under the terms of any National or local agreement. Payments are made under the National Voluntary Severance Scheme of the National Joint Council for the Port Transport Industry. (b) I am informed by my right hon. Friend the Secretary of State for Energy that for a mineworker made redundant and eligible under the Redundant Mineworkers Payments Scheme, benefits payable are generally as follows:

(i) one year's service, age 21; a lump sum comprising half a week's pay, plus half a week's modified pay, plus £100.
(ii) 10 years' service, age 30; a lump sum comprising 5 weeks' pay, plus 9 weeks' modified pay. plus £1,000.
(iii) 20 years' service, age 40; a lump sum comprising 20 weeks' pay, plus 19 weeks' modified pay. plus £1,500.
(iv) 30 years' service, age 50; a lump sum comprising 45 weeks' pay, plus 73½ weeks' modified pay; in addition, lump sum and continuing weekly payments under the rules of the pension scheme of which the redundant mineworker is a member.
(v) 40 years' service, age 60; a lump sum comprising 29½ weeks' modified pay, plus weekly payments (including unemployment benefit) at about two thirds of modified pay, continuing to age 65.
(vi) 45 years' service, age 65; zero since this is the normal retiring age.

Here "a week's modified pay" is a week's pay subject to an upper limit of £130.

These benefits are payable under the terms of the Employment Protection (Consolidation) Act, 1978, and of the Redundant Mineworkers and Concessionary Coal (Payments Schemes) Order 1978 as amended—most recently by SI 1981 No. 482, part 1 of schedule 3 to which sets out the redundant mineworkers payments scheme as amended to the present date.

Benefits payable under the industry's pension scheme will depend on duration of membership of the scheme as well as length of service.

On (c) to (f), I am informed by my right hon. and learned Friend the Chancellor of the Exchequer that the following redundancy compensation is payable to civil servants.

455W

Length of Service from entry at age 20 (years)
Category	1	10	20	30	40
(c) Mobile non-industrial	One month's pay	10 months' pensionable pay	Lump sum compensation payment of 6 months' pensionable pay. Annual compensation payment to age 60 of ¼ of pensionable pay. Immediate payment of superannuation lump sum of ¾ of pensionable pay.	Lump sum compensation payment of 6 months' pensionable pay. Annual compensation payment to age 60 of 46% of pensionable pay. Immediate payment of superannuation lump sum of 1⅜ pensionable pay.	Immediate payment of pension of half pensionable pay and superannuation lump sum of 1½ times pensionable pay.
(e) Non-mobile non-industrial, and	2 weeks' pensionable pay	25 weeks' pensionable pay	65 weeks' pensionable pay	104 weeks' pensionable pay	As for (c) above
(f) Non-mobile industrial

There are no mobile industrial civil servants.

Redundancy compensation is not paid to civil servants after the age of 60 since they are eligible at that age for normal retirement benefits. Payments are made under Section 1 of the Superannuation Act 1972.