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COVID-19. Furloughed employees’ redundancy must be based on full pay.
Government passes new law eliminating any doubt.
Over the last few months it has been a concern for employers and employees that the impact of the COVID 19 pandemic may result in the need to administer redundancies.
We have been dealing with numerous enquiries on the question of the level of salary which should be used to calculate the payments. Finally yesterday (30th July) the Government issued a clear update on the situation.
The new law was passed to ensure that Furloughed employees receive statutory redundancy pay based on their normal wages, rather than a reduced furlough rate.
It is also worth remembering that the changes will also apply to Notice Pay and other entitlements.
For further information please go to https://www.gov.uk/government/news/new-law-to-ensure-furloughed-employees-receive-full-redundancy-payments
Our payroll specialists can advise you on the payroll aspect of redundancy payments and related areas.
It is advisable to seek professional advice before making Furloughed employees redundant. Our HR experts can help you through the process.
For further advice on payroll or HR matters please contact us.