Furloughed employees to receive full redundancy payments from July 31st
The Government has announced a new law to ensure all furloughed employees receive redundancy payments at 100% of their normal salary, rather than a reduced furlough rate. It means that employees won’t be short-changed if they are made redundant whilst furloughed under the Coronavirus Job Retention Scheme (CJRS) from 31st July 2020.
The new law will also apply to statutory notice pay; usually employees get a period of notice before their employment ends, which must be paid at the normal rate. Be sure to check out their rights if you do end their employment.
Additionally, more changes will come into force to ensure basic awards for unfair dismissal cases are based on full pay rather than wages under the CJRS.
The Government is urging employers to do everything they can to avoid making redundancies, but where that is not possible, workers will now receive the payments they are entitled to.
Making an employee redundant is not an easy decision for any business. THSP work with many customers to arrange COT3 agreements by helping them manage this process. If this is something you would like to hear more about then call us, on 03456 122144 and speak to one of our employment lawyers.