The CBI has made a recommendation to the Government as an alternative to redundancy to try and tackle spiralling unemployment in the UK.  The recommendation is that employers either use the redundancy route or an “alternative to redundancy” ATR route.  The employer could place the employee on ATR for a period of up to 6 months as an alternative to redundancy. 

The employee would not be required to work during that period and would get an ATR allowance.  The allowance would be made up of Job Seeker’s allowance plus another equivalent amount paid by the employer on a weekly basis.  If the employer chooses, he can take the employee back at the end of the set period or when the business picks up.  If the employer chooses not to then redundancy rights are preserved and the employee would have up to six months additional service. 

If redundancy still takes place it will cost the business more but the employee receives more than the state benefit and the possibility of their job back.  Will there be a take up I’m not sure…