Government enacts legislation to ensure furloughed workers receive statutory redundancy pay based on their normal wages
The new law, announced by Business Secretary Alok Sharma will ensure that staff receive statutory redundancy pay based on their normal wages, rather than a reduced furlough rate.
The changes will mean those furloughed under the Coronavirus Job Retention Scheme are not short-changed if they are made redundant. They will also apply to statutory notice pay and other entitlements, providing some reassurance during this difficult time
Employees with more than two years’ continuous service who are made redundant are usually entitled to a statutory redundancy payment that is based on length of service, age and pay, up to a statutory maximum.
This legislation, which came into force on Friday 31 July, will ensure that employees who are furloughed receive statutory redundancy pay based on their normal wages, rather than a reduced furlough rate.
Other changes coming into force will ensure basic awards for unfair dismissal cases are based on full pay rather than wages under the CJRS.
More details of the government’s announcement can be seen here