News | Legal News

31 July 2020

Redundancy pay to be protected for furloughed workers

Since the introduction of the Government’s Coronavirus Job Retention Scheme, there has been uncertainty as to how redundancy pay should be calculated for those employees who qualify and are on furlough.  However, the Government has moved to end this uncertainty and announced that a new law will come into force today (Friday 31 July 2020) to ensure that all qualifying furloughed employees receive statutory redundancy pay calculated at 100% of their normal (pre-furlough) pay, and not at a reduced furlough rate.    The same position will also apply to other statutory employment rights that are based on the calculation of  “a week’s pay”, such as notice pay (but not any enhanced notice payments).

The Government has published details of this via the following link:  https://www.gov.uk/government/news/new-law-to-ensure-furloughed-employees-receive-full-redundancy-payments.

Further, for those interested, this law is contained in The Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations 2020, and can be found here: https://www.legislation.gov.uk/uksi/2020/814/contents/made.

For more information or advice please get in touch with Ben Lindsay or our employment team on 01753 889995 or email enquiries@bpcollins.co.uk

Ben Lindsay

Ben Lindsay

Tel: 01753 396304 | 07341 864310

Jo Davis

Jo Davis

Tel: 01753 279029 | 07894 608230

Chris Brazier

Chris Brazier

Tel: 01753 279029 | 07891 990980

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