Backing given for short time working plan

Tue, 07 Jul 2009

The Confederation of British Industry (CBI) has called for new schemes to combat redundancy, including an 'Alternative to Redundancy' scheme whereby employees do not work for six months but still receive an income.

This follows on from a proposal from BT that employees take a year off in exchange for a 75 per cent pay cut.

With such schemes in mind, a spokesperson for the Federation of Small Businesses (FSB) stated that "a short time working subsidy provided by the government would help avoid redundancies and help employers retain and invest in skills to prepare for the future".

He added: "The FSB and the Trades Union Congress have proposed their own short time working scheme which would help employers hold on to their most valuable asset, their staff.

"Small firms are doing all they can to hold on to their employees during these tough times."

Under the terms of the CBI's 'Alternative to Redundancy' scheme, employees would not work during that time, but would be paid an amount equal to twice the rate of Job Seekers Allowance - paid half by government and half by the employer.

Employees on such a scheme would be entitled to seek new work should other opportunities become available.

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