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Redundancy (Compensation)

Volume 12: debated on Wednesday 11 November 1981

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asked the Secretary of State for Scotland what compensation is payable to a 55-year-old senior lecturer in a Scottish college of education with 30 years' experience who accepts redundancy; and if he will express the figure (a) under the Government's new regulations and (b) under the Crombie code.

The following sums would be payable depending upon whether or not the person concerned was entitled to Crombie compensation:

£
With entitlement to Crombie compensation
(a) Lump sums
Redundancy payment under Employment Protection (Consolidation) Act 1978*3,510·00
Superannuation lump sum15,611·31
Crombie resettlement compensation3,797·31
22,918·62
(b) Annual payments
Unemployment benefit†1,076·75
Superannuation pension5,292·00
Crombie long-term compensation‡3,039·25
9,408·00
Without entitlement to Crombie compensation
(a) Lump sums
Redundancy payment under the Employment Protection (Consolidation) Act 1978*3,510·00
Superannuation lump sum15,611·31
Premature retirement compensation lump sum1,781·09
20,902·40
(b) Annual payments
Unemployment benefit1,076·75
Superannuation pension5,292·00
Premature retirement compensation║1,764·00
8,132·75
* Based on a salary of £14,112 per annum.
† Based on current flow rate of unemployment benefit. Unemployment benefit ceases to be payable after a year, but the claimant's Crombie long term compensation would then be enhanced by the amount of unemployment benefit that would have been paid.
‡ Payable until normal retiring age (but may be withdrawn or reduced if the claimant finds suitable alternative employment). When the claimant reaches normal retiring age, Crombie retirement compensation would be payable.
║ Assumes 10 years additional service credited.

asked the Secretary of State for Scotland what compensation is payable (a) under the Crombie code and (b) under the Government's new regulations to a 44-year-old lecturer with 17 years' experience in a Scottish college of education who accepts redundancy.

The following sums would be payable depending upon whether or not the person concerned was entitled to Crombie compensation.

With entitlement to Crombie compensation
£
(a) Lump sums
Redundancy payment under Employment Protection (Consolidation) Act 1978*2,405·00
Crombie Resettlement lump sum1,859·98
4,264·98
(b) Annual payments
Unemployment benefit†l,076·75
Crombie long-term compensation‡4,608·05
5,684·80
Without entitlement to Crombie compensation
£
(a) Lump sum
Redundancy payment under Employment Protection (Consolidation) Act 1978*2,405·00
(b) Annual payment
Unemployment benefit†1,076·75
* Based on a salary of £12,021 per annum.
† Based on current flat rate of unemployment benefit. Payable only for the first year.
‡ Payable until normal retiring age (but may be withdrawn or reduced if the claimant finds suitable alternative employment). When the claimant reaches normal retiring age, Crombie retirement compensation would be payable. Frozen superannuation would then also be payable.