by business editor Trevor Sturgess

The CBI has proposed a package of labour market measures, including an alternative to redundancy, that it says will help stem the tide of job losses.

The unemployment total could breach the three million mark nationally within the next 12 months. The Kent total stood at 35,197 on May 14, a rise of 465 over the previous month and 18,000 higher than a year ago.

Although the employers's organisation - which has a regional office in Sevenoaks - says firms are "doing their utmost" to protect jobs by introducing flexible working and pay freezes, it predicts unemployment will continue rising to peak at 3.03 million in the second quarter of 2010. It says actions taken now could still save jobs and businesses.

The "alternative to redundancy" (ATR) scheme would give organisations the choice of using the existing redundancy path, or placing an employee on ATR for up to six months.

The employee would not work during that time, but would be paid an ATR allowance equal to twice the rate of Job Seekers Allowance - paid half by government and half by the employer.

There would be no extra cost to the Government and while on ATR an employee could seek new work.

The scheme allows the firm to take the employee back into work when the ATR period expires or if business improves earlier. If demand fails to pick up then full redundancy rights are preserved, and would include the six months extra of ATR service.

The CBI has also urged the Government to review the length of redundancy consultation. Currently, firms must give a consultation period of at least 90 days where 100 or more employees face redundancy in a three-month period.

John Cridland, CBI deputy director-general, said: "The worst of the recession may be over - but businesses still face a long convalescence and the dole queues will continue to grow.

"The alternative to redundancy scheme could save jobs by giving businesses more leeway as the economy recovers."