Employee reward and benefits news
Cost of redundancy in the UK is "staggering"
Redundancy payments in the UK have averaged £500 million per month this year, new statistics provided by HM Revenue & Customs have outlined.
By the end of this month, UK employers will have paid out a total of £6 billion for the year - a figure that law firm Wedlake Bell has noted as a 25 per cent rise on the £4.5 billion given to workers in redundancy settlements in the year up to March 31st 2009.
David Israel, head of employment at Wedlake Bell, said that a total of £10.5 billion for 24 months proves that the cost to UK employers of recession-related job cuts in redundancy payments is "staggering".
He continued: "Businesses have been willing to take a pretty big upfront hit in order to deliver longer-term savings. On average they have been paying far more than the minimum redundancy payments they have to pay by law."
Last month, it was revealed that unemployment in the UK held firm at 2.46 million.
Posted by Jo Morgan
