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The Government has announced it has changed its mind and will now stick with the current system of statutory redundancy pay calculation based on 3 different organizations age bands. It had originally decided to organizations scrap the current system by going for a simplified, single system for calculating these payments because it believed the current system was inherently age discriminatory. However, a single system effectively meant either levelling up the payments for younger workers to the organizations level that applies to those aged over 41, or levelling down the level used for older workers to that of younger workers. Employers organisations insisted that ‘levelling up’ would place too much of a cost burden on employers whilst the trade unions and the age charities insisted that levelling down would be unfair to older workers – who because of their age are likely to face more barriers in trying to get jobs subsequently.
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