Redundancy: furloughed workers must receive full notice pay
The government has today announced that it is bringing in a new law to make sure furloughed employees who are made redundant receive full pay during their notice period.
30.07.2020
As we discussed in our FAQ about furlough and redundancy calculating the notice pay of a furloughed employee depends on the whether they are entitled to more notice than the statutory minimum and whether they had normal working hours or their hours varied. In many cases, this means that redundant employees receive less than would have received had they not been furloughed.
The new rules, which have not yet been published, will mean that employers must calculate notice payments by reference to their employee's normal salary rather than their furlough wage. The government has said that the law will apply from Friday 30 July 2020 (tomorrow).
It's also been reported that the legislation will also ensure basic awards for unfair dismissal cases are based on full pay rather than wages under the furlough scheme. We'll update you once the legislation is published.
Our Coronavirus updates
We're working hard to keep you up to date with legal developments around Coronavirus. We've set up a portal which includes lots of helpful articles and advice to help you.
If you have a query, that we haven't answered, please contact us.
"New laws will ensure furloughed employees are not short-changed and are paid their full redundancy pay entitlement - providing some reassurance in an undeniably testing time."
https://www.bbc.co.uk/news/business-53591964
Key Contacts
Related Articles
Expert CommentEHRC Code of Practice for services: what does it say about toilets and changing rooms?The government has put the draft Code of Practice for services, public functions and associations before parliament. Parliament has 40 days to scrutinise the Code and it will automatically be adopted, without debate or a vote, unless MPs intervene.
Expert CommentNew trade union workplace access rights: guide for schools and collegesFrom 1 October 2026, trade unions have the right to ask to go into most schools and colleges to speak to staff even where they are not recognised by the employer, or have union members already there.
Expert CommentThe new right for trade unions to go into workplaces: draft Code of Practice and consultationFrom 1 October 2026, trade unions have the right to ask to go into most workplaces to speak to staff even where they are not recognised by the employer or have union members.