Furloughed employees and redundancy payments: a new law

New legislation has been brought in to ensure the fair treatment of employees on furlough leave who are being made redundant.

‘Furlough leave’ was introduced into the UK in response to the coronavirus pandemic in an effort to prevent mass redundancies. However, some businesses will still need to make redundancies despite the use of the furlough scheme. The new law being introduced ensures furloughed employees facing redundancy will receive statutory redundancy pay based on their usual wages, rather than their furlough wage (80%), effective 31^st July 2020. Employees are entitled to statutory redundancy pay when they have worked for their employer for two years or more.

Additionally, any unfair dismissal claims made will be based on full pay – rather than the wage received on furlough.

At Linder Myers Solicitors, we advise both employers and employees on employment and HR law. So if you’re an employee unsure if you’ve been treated fairly or an employer who needs to make redundancies and needs advice on staying compliant then get in touch with our team today.