Redundancy

Press, 19 March 1984, Page 18

Redundancy

Sir, — Your editorial of March 15 shows a, disturbing lack of understanding of the purpose Of redundancy compensation. Even, a brief perusal of the authorities (both New Zealand and overseas) will reveal a three-fold concept underlying the payment of compensation for redundancy: compensation for economic loss, e.g. service-related benefits, compensation for noneconomic loss, e.g. the ability to utilise a skill often acquired over many years of effort, and compensation for the loss of a long-term employee’s proprietary rights in his work which have gained in value with the years of service. Many industrialised market economies recognise the rights of employees to compensation when they or their jobs become redundant by legislation which establishes that right on the basis that any or all of the elements described may be present in a particular case of redundancy. This right exists irrespective of whether the loss leads to unemployment — Yours, etc., V. KAY STRINGLEMAN, Oxford. March 15, 1984.