The Workers Union has lashed out at firms who skimp on redundancy pay.
The law says workers are entitled to a payout if they’ve been with their employer for more than 2 years. Calculations are usually made using employees’ full salaries. However, several companies are using furlough rates to arrive at redundancy figures.
The Workers Union says
The Workers Union’s chief spokesman said: ‘Over the last two weeks we have received disturbing reports from members under threat of redundancy. They have been quoted figures that are – in some cases – considerably lower than they expected. There are two ways of looking at this: either payroll chiefs are unaware of the rules or they are trying to flout them.
‘The statutory weekly wage is already capped at £538. Many of our workers earn much less than that, so taking an additional amount away does not leave much in the kitty.
‘We appreciate that COVID-19 has hit business hard, but this is the worst time for low-income workers to lose their jobs. The recovery is likely to be slow and opportunities limited. The government needs to lead on this issue and make sure that beleaguered staff get what they are entitled to.’
The future of work
The news comes amidst a recent McKinsey report that suggests Coronavirus may mark a change in the lives of working people. It argues that workers with the lowest incomes are more vulnerable to shutdowns and creeping automation.
In addition, McKinsey expect that UK GDP will drop by 9 percent this year. This means that over 7 and half million people could be let go, furloughed or suffer reduced working hours. The risks are particularly acute amongst workers earning less than £10 per hour. Nearly 50 percent of jobs in that income bracket are at risk.
Mr Morgan said: ‘Again and again we’re seeing workers’ pay packets under attack. Unless the government is seriously considering universal income, we need an urgent discussion about these issues. When the country needed people to keep essential services going, working people were there. It paints a shoddy picture of modern Britain if we fail to give these people the salaries, recognition and support their work deserves.’
The Workers Union – Britain’s hardest working union