Alternative to redundancy proposed by CBI

In radical proposals the CBI is calling on government to overhaul employment legislation at what it describes as a critical time for the UK economy.

Among the ideas presented is a scheme designed to provide employees with an option to take time off work for a period of six months, rather than being made redundant.

People choosing to take up to six months off work, under the ‘alternative to redundancy’ (ATR) scheme would receive twice the level of job seekers’ allowance they’d be permitted if made redundant, split 50/50 between the government and employer.

Employment legislation has added over £70 billion to business costs since 1998, according to the CBI, and action to address this burden is required quickly as the organisation predicts unemployment in the UK will reach 3.03 million by the second quarter of 2010.

John Cridland, CBI director-general, said:

The worst of the recession may be over, but businesses still face a long convalescence and the dole queues will continue to grow. The alternative to redundancy scheme could save jobs by giving businesses more leeway as the economy recovers.

Employers and employees have shown extraordinary flexibility and co-operation in trying to protect jobs over recent months.

The CBI appears to be trying to formalise some of the schemes created by individual companies on an ad hoc basis, while clawing back some of the costs of legislation introduced over the last decade.

How likely is an ATR scheme to take off with government backing? The words pigs and fly seem appropriate.

[Picture credit: Justin Cormack licenced from Flickr]