From Furlough to Redundancy

Furlough and redundancy pay - McCabe and Co SolicitorsNew laws came into force on 31st July 2020 to protect the rights of employees who were furloughed under the Coronavirus Job Retention Scheme (CJRS).

Throughout the pandemic, the government has urged businesses to do right by their employees.  The majority of businesses have done so, however, there are a minority who have not.

The new laws ensure that furloughed employees who are then made redundant will receive redundancy pay based on their normal wage, rather than a reduced furlough rate

The new laws also apply to statutory notice pay and other entitlements, providing some reassurance during this difficult time.  During this notice period, employees must be paid and notice pay is based on normal wages, rather than their wages under the CJRS.

Employees with more than 2 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. 

Making Staff Redundant – Consultations

Related imageIf you do not consult employees in a redundancy situation, any redundancies you make will almost certainly be unfair and you could be taken to an employment tribunal.

Collective consultation

Follow these steps:

  1. You must notify the Redundancy Payments Service (RPS) before a consultation starts. The deadline depends on the number of proposed redundancies.
  2. Consult with trade union representatives or elected employee representatives – or with staff directly if there are none.
  3. Provide information to representatives or staff about the planned redundancies, giving representatives or staff enough time to consider them.
  4. Respond to any requests for further information.
  5. Give any affected staff termination notices showing the agreed leaving date.
  6. Issue redundancy notices once the consultation is complete.

More detailed information can be found here

Your Rights If Your Employer Is Insolvent

If your employer is ‘insolvent’ this means it can’t pay its debts. You have rights if this happens and can make a claim for money you’re owed.

What you can claim

The money will be paid to you by the government. It’s not guaranteed that you’ll get everything your employer owes you but you can claim for:

  • statutory notice pay
  • redundancy
  • up to 8 weeks’ wages, including a payment for a protective award if your employer has failed to consult collectively with staff
  • up to 6 weeks’ holiday pay
  • unpaid pension contributions – get in touch with the insolvency practitioner to claim this for you
  • a basic award for unfair dismissal

You can get up to £479 a week for each claim. For example, if you’ve claimed for redundancy and loss of notice you can get payments for both.

You can find more detailed information here

Training Course – Employment Law

Date: Wednesday 23rd November 2016

Time: 09:30 – 12:30

Venue: Bosnia Herzegovina Centre  DE1 1LN

Book your place here

An essential course for all those groups who employ or are thinking of employing members of staff.  Andrew Monroe will present and explain the golden rules to help you avoid any mishaps.  Redundancy and dismissal regulations will be covered. Andrew will also explain the implications of new legislation.