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.