FURLOUGHED EMPLOYEES TO RECEIVE FULL REDUNDANCY PAYMENTS

The Department for Business, Energy and Industrial Strategy announced last week that they will be implementing a new law which means that all furloughed employees will receive a redundancy payment based on their normal wages – not the furlough rate!

Workers who have more than two years continuous service who are made redundant are usually entitled to a statutory redundancy payment which is calculated based on their length of service, age and pay – up to a statutory maximum.

The Business Secretary Alok Sharma said: "New laws will ensure furloughed workers are not short-changed if they are ever made redundant – providing some reassurance for workers and their families during this challenging time.."  The new Regulation came into effect on Friday, 31 July 2020 and will provide some protection to furloughed workers who are unfortunately facing redundancy.

If you require any assistance calculating redundancy payments or you need to understand your rights if you are made redundant please do not hesitate to contact a member of our employment team on 01522 814638.