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UPDATE: Furlough redundancy payments

31 Jul 2020

The Government announced yesterday that it would be introducing a new law to ensure that redundancy payments made to furloughed employees are to be calculated based on 100% of their normal pay, as opposed to any reduced furlough rate. This is due to become law on 31st July.

Though this applies to all employees, this is predominantly aimed at employees with irregular salaries whose payments would be based on an average of their previous 12 weeks’ pay. For those on furlough this could be less than 100% of their normal pay.

Different rules apply to notice pay dependant  on whether or not the notice period is statutory or a longer contractual notice period.  Please let us know if any advice is needed in relation to this.

The team are very busy advising in respect of furlough leave, flexible furlough, redundancies and

changing terms and conditions of employment. Please give us a call if we can help your business at this difficult time.