UK ensures furloughed staff get full
The UK government yesterday brought in legislation to
protect workers and ensure all furloughed employees who are
being made redundant receive their full entitlement.
Furloughed employees who are then made redundant will
receive statutory redundancy pay based on their normal wage
under the new legislation that comes into force beginning
Throughout the pandemic, the government has urged businesses
to pay employees being made redundant based on their normal
wage, rather than their furlough pay, which is often less.
The majority of businesses have done so, however, there are
a minority who have not.
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.
Business secretary Alok Sharma said the 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.
These changes will also apply to Statutory Notice Pay, which
is where employees must be given a notice period before
their employment ends, varying from at least one week’s
notice up to 12 weeks’ notice, depending on how long they
have worked for their employer. During this notice period,
employees must be paid.
This legislation will also ensure that notice pay is based
on normal wages rather than their wages under the
Coronavirus Job Retention Scheme (CJRS), according to an
Other changes coming into force will ensure basic awards for
unfair dismissal cases are based on full pay rather than
wages under the CJRS.