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Dundee Remploy staff’s severance woes

The Remploy factory in Dunsinane Avenue.
The Remploy factory in Dunsinane Avenue.

Dundee Remploy employees have complained that they will lose their severance pay if they end their contracts early for other jobs, but the company insists it is being generous.

The Dunsinane factory is facing an uncertain future, although the company has denied that closure is likely as there have been bids to take it over as a going concern.

Dundee West Labour MP Jim McGovern raised concerns about the treatment of staff with the Deputy Prime Minister Nick Clegg.

The MP said a number of the 43 staff approached him to complain that they were informed by Remploy that they could not leave their contracts early if they found alternative employment, and if they did so they would lose their severance payments.

Some have already found new employment and will suffer financially if they start their new jobs before their contracts with Remploy expire.

Mr McGovern said: “The Government promised that they would ensure Remploy’s staff would be helped into work but this means very little if those that do find work are financially punished for leaving.”

Mr Clegg said the Department for Work and Pensions would look into the matter.

A Remploy spokesman said: “Our arrangements are more generous than in many businesses. If an employee at risk of redundancy decides to leave, they are regarded as having resigned.

“Remploy has an agreement with the trade unions that an employee at risk of redundancy who has found another job can leave the company with 50% per of their redundancy entitlement if their departure has no detrimental impact on the business.