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

https://www.gov.uk/government/news/new-law-to-ensure-furloughed-employees-receive-full-redundancy-payments

Source: Business Wales

https://businesswales.gov.wales/news-and-blogs/news/new-law-ensure-furloughed-employees-receive-full-redundancy-payments

Posted on: Monday 3rd August 2020