The Trades Union Congress (TUC) has called on the Labour administration to increase the weekly limit on statutory redundancy pay.
According to the congress, in order to restore the "real value" of such redundancy pay when it was first introduced at £40 in 1965, the government should raise the weekly maximum limit from £330 to £500.
Statutory redundancy pay is provided by the government if an employer goes bust and is owed to any employee who has been with the same organisation for more than two years.
The TUC stated that, whereas the current limit on such pay is just 73 per cent of workers' average wages, in 1965, the amount was more than twice the average weekly earnings.
"Now is the right time to start to restore the value of redundancy pay," stated TUC general secretary Brendan Barber.
Earlier this week, the TUC showcased a documentary highlighting key equal pay victories throughout the 20th century to launch its new equal pay archive entitled Recording Women's Voices.