I think Mel meant employers too scaredycat, I also know that no insurance ever covers dismissal, did you ever receive any documentation from payplan regarding what would and would not be covered?
I think what Mel meant to say was that if your husbands employer is looking at dismissal to get out of paying redundancy then this is grossly unfair (but I am sure she will correct me if I am wrong), your husband obviously needs to take further advice if he is at risk of dismissal and his employer should be following the correct procedure if there is any question regarding misconduct