Clause 7

Part of Employment Bill [Lords] – in a Public Bill Committee at 12:00 pm on 14 October 2008.

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Photo of Barry Gardiner Barry Gardiner Labour, Brent North 12:00, 14 October 2008

I wish to speak about this because we are all considering the issues of people who might be facing unemployment and redundancy, and the measure is extremely relevant in the current financial situation. It is abhorrent that someone should seek to avoid paying legitimate redundancy payments to any employee. In such a situation, the failure to pay appropriate redundancy moneys can be the sort of financial interruption that leads ultimately to someone defaulting on their mortgage, thus leading to foreclosure and a dramatic effect on their whole life. Even if such a person could get back into employment within three or four months, the non-payment of redundancy moneys might precipitate the loss of a family home. I am delighted that the clause puts in place appropriate compensation for people who have suffered financial loss as a result of such events. It should be welcomed by both sides of the Committee, and I congratulate the Government on introducing it.