Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Employment lawRedundancy

Whitehall redundancy pay cap Bill will lead to bitter employee relations and low morale

by Personnel Today 8 Jul 2010
by Personnel Today 8 Jul 2010

A Bill to cap Whitehall redundancy payouts at one year’s pay will result in a bitter employee relations climate within the Civil Service, as well as plummeting staff morale, HR directors and employers’ groups fear.


The new Bill intends to bring Whitehall severance packages in line with best practice in the private sector and cap all compulsory redundancy payments at 12 months’ pay, and limit payments for voluntary exits to 15 months’ salary.


But Francesca Okosi-Arimah, the former HR director of Whitehall department Defra, and now the director of support services at East Thames Housing Association, warned the move would have a negative effect on staff morale at a time when government departments are already looking at making significant cuts at senior and junior civil service levels.


She told Personnel Today: “A lot of people are going to be unemployed. A lot of them have specialist skills that might not be transferable to the private sector. It will create a difficult employee relations climate in the Civil Service and very low morale as well.”


The introduction of the Bill comes after the government tried to impose reductions to Civil Service compensation packages in April, but a High Court judicial review ruled these changes were unlawful and had to be scrapped.


Mike Emmott, adviser on employee relations at the Chartered Institute of Personnel and Development, said he understood why the government was considering the plans, but spurned the idea.


“They will save a lot of money and make significant savings. The fact they are coming back with legislation says there is real money on the table and serious money [savings] over years,” he said.


“It’s not generally a good idea for the government to undermine contractual rights… These are legal entitlements as a result of their employment contract. I don’t think it’s a good idea for government to legislate and deny people their legal entitlement.”


The union Prospect, which represents 122,000 members in the public and private sectors, said civil servants were outraged and slammed the plans as “unlawful and undeserved”.


Prospect deputy general secretary Dai Hudd said: “Six hundred thousand staff are affected, of whom tens of thousands potentially face redundancy through no fault of their own.


“The government wants to rip up their rights in a way that would do justice to King John. But it will not work. These rights are protected by law, and bully-boy tactics will not get round that fact.”


Francis Maude, minister for the Cabinet Office, described the current system as “untenable”, and said the use of legislation to implement the reductions in payments was necessary because of the economic climate.

Avatar
Personnel Today

previous post
‘Institutional racism’ label no longer applicable to Metropolitan Police, inquiry finds
next post
Public sector pensions criticism is unfair, industry experts warn

You may also like

Employers lack data to make IR35 worker status...

25 May 2022

Maternity leave: Cost of living crisis highlights need...

25 May 2022

Tube strike on 6 June to see 4,000...

24 May 2022

One in five employers planning ‘no jab no...

19 May 2022

MP demands timeline on carer’s leave legislation

13 May 2022

Prime minister steps up calls for 90,000 civil...

13 May 2022

Queen’s Speech: absence of employment bill leaves organisations...

10 May 2022

Morrisons saves 16,000 jobs with McColl’s rescue deal

10 May 2022

Queen’s Speech: Exclusivity contracts for low-paid workers to...

9 May 2022

MP seeks legal protections for employees undergoing fertility...

9 May 2022
  • Strathclyde Business School expands its Degree Apprenticeship offer in England PROMOTED | The University of Strathclyde is expanding its programmes...Read more
  • The Search for Talent: Six Major Employer Pitfalls PROMOTED | The Great Resignation continues unabated...Read more
  • Navigating the widening “Skills Confidence Gap” in 2022, and beyond PROMOTED | Cornerstone OnDemand conducted a global study...Read more
  • Apprenticeships are the solution to your recruitment problems PROMOTED | Apprenticeships have the pulling power...Read more
  • What it really means to be mentally fit PROMOTED | What is mental fitness...Read more
  • How music can help to ease anxiety at work PROMOTED | A lot has happened since March 2020, hasn’t it?...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2022

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2022 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+