Furlough and Redundancy Payments
On 30 July 2020, the Government brought in a new law to ensure that furloughed employees received statutory redundancy payments based on their normal wages, rather than the reduced amounts that furloughed staff have been receiving under the Government’s Coronavirus Job Retention Scheme.
The law is in force from 31 July 2020, so all redundancies following that date will be subject to the new rules.
The changes also apply to notice payments, which must also be based on normal wages and not furloughed earnings.
For those employers who have utilised the job retention scheme, but who are not planning on making redundancies but will retain staff beyond 31 January 2021, the Government has also announced an incentive package. This will mean £1000 for each employee who was furloughed by their employer, but who remains in employment after 31 January 2021. A nice little belated Christmas present from the Chancellor.
Date
27 August, 2020
Author
Lynsey Howes
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