Sentient Group Ltd
 
Info Update 2020/42                                                        Issue Date: 31/07/2020
 
Redundancy & Furlough
 
It is possible that employers who have made employees redundant during furlough may have been taking the opportunity to base redundancy pay on the reduced earnings paid under the CJRS.

At the moment employees on regular fixed salaries get redundancy payments based on their normal wage as if they were working full hours (so 100% of normal pay), whereas employees with fluctuating hours/earnings get a payment based on the average of their last 12 weeks’ pay - which, if they’ve been furloughed, is likely to be less than 100%.
The Department for Business, Energy & Industrial Strategy announced yesterday that it is bringing in a new law from today to ensure that if employers are to make employees redundant during furlough they receive redundancy payments at 100% of their normal pay (up to the statutory maximum), rather than a reduced furlough rate.

Our clients have access to detailed advice on redundancy in their Employment Guidance Manual and are encouraged to phone for advice if they any queries in this regard. If you are not a retained client of Sentient and would like to discuss how you can access these documents, please do contact us.

We will, of course, keep you informed of any other developments.
 
 
The advice and comment in this update is not meant to be an authoritative statement of the law. The articles and summaries should not be applied to any specific set of facts and circumstances without seeking further advice. Whilst every care is taken to ensure that the content is correct Sentient cannot accept responsibility for the accuracy of statements made nor the result of any actions taken by individuals after reading such.
 
 
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49-51 Pegholme
Wharfebank Mills
Ilkley Road
Otley
LS21 3JP
03456 446006
info@sentientuk.co.uk 
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