New law to ensure furloughed employees receive full redundancy payments

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.

The UK Government have brought in legislation from Friday 31 July 2020 that will:

  • ensure that furloughed employees receive statutory redundancy pay based on their normal wages, rather than a reduced furlough rate
  • mean those furloughed under the Coronavirus Job Retention Scheme are not short-changed if they are made redundant
  • also apply to statutory notice pay and other entitlements, providing some reassurance during this difficult time

For further information please visit the GOV.UK website.

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