Later this month, a bill is to be put forward which aims to get workers a fairer deal in terms of the redundancy pay they receive.
Labour MP Lindsay Hoyle is to set out his Statutory Redundancy (Amendment) Bill in an attempt to raise the amount of money employees are entitled to under statutory redundancy pay terms.
The bill is yet to receive assent from the government.
Commenting on the proposals, Mr Hoyle said: "When redundancy pay was introduced in 1965 it was a progressive measure, designed to help workers through hard times.
"But it has been allowed to wither drastically in value so that it is now worth around only half of earnings."
He added that state redundancy pay is so "out of step" with average earnings that it acts as a ceiling for workers, as opposed to a floor to protect them.
Recently, the Trades Union Congress issued a warning to firms concerning spurious sackings and redundancies.
It said that companies which fail to conduct redundancies in the appropriate manner will face unfair dismissal claims.