Redundancy alternative proposed by CBI

Businesses could be allowed to adopt different project scheduling under proposals intended to offer an alternative to redundancy (ATR), outlined in a new report.

Ministers have been urged to introduce a new ATR that would enable organisations to place employees on an ATR for up to six months by the Confederation of British Industry (CBI) and Siemens.

The joint report justifies the plans by suggesting that businesses will need to work much harder to remain an attractive jobs destination following the recession.

Employers could use employee scheduling software to implement the suggested ATR proposals, which the CBI claims would enable employees to stay on the company's pay roll during the recession, being paid an amount equal to twice the rate of Job Seekers Allowance.

John Cridland, CBI deputy director-general, explained that the ATR could "save jobs by giving businesses more leeway as the economy recovers".

He said: "Businesses will be more able to cope with sharp drops in demand and prepare for recovery, while workers benefit from improved financial support and a door that is kept open for six months.

"This is not about businesses ducking their redundancy responsibility - in fact if a scheme runs for six months and a redundancy is still made then the business will end up paying more."

It comes after research by the CBI and Harvey Nash indicated that nearly two-thirds of employers are considering making significant changes to their workforce organisation.

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