UK workers' redundancy woe

UK workers are paid less than half EU average

Minimum redundancy pay in the UK is amongst the lowest throughout the European Union, a survey has found.

Research from Mercer Human Resources Consulting showed that the average redundancy pay across the EU is more than twice the level of the UK.

UK employees being made redundant can expect to receive only one-fifth the sum paid to workers in Spain.

Only workers in France and the Netherlands receive less money than UK employees.

Generous law

The study found that a 40 year old white-collar worker in the UK earning £20,000 a year who is made redundant after ten years service would receive on average £5,128.

In addition, if the worker had to rely on the bare minimum guaranteed by UK employement law the redundancy payout would be even lower, just £2,600.

However, in most of the rest of the EU more generous employment practices guarantee a better deal for workers.

For example, a Spanish worker in the same position would be entitled to £25,464 while in Italy and Belgium an employee would be paid £18,276 and £15,000 respectively.

Overall, across the EU, the worker would receive on average £11,163, more than twice the level of the UK.

However, in France and the Netherlands firms would have to pay out just £5,000.