Employers should pay notice and redundancy at full rate (not furloughed rate)

04 Sep Employers should pay notice and redundancy at full rate (not furloughed rate)

The Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations 2020 (SI 2020/814) effectively states that, if an employee is on furlough leave and their employment is terminated and/or they are made redundant, the notice period or payment in lieu of notice should be paid at the employees full rate of pay (not their reduced furloughed rate of pay). It also states that statutory redundancy should be calculated by reference to the employees full rate of pay rather than the reduced furloughed rate of pay. Although the law that was in existence prior to these regulations reasonably reflected this position, the Regulations now make it crystal clear so there is no room for an employer to argue otherwise.

 



Contact us for a consultation

Initial chat is free and no obligation | Speak to us in confidence

South Woodford

Address: 1A Fullers Parade, Fullers Road, South Woodford, London E18 2BF

Email: info@elslaw.co.uk

Phone: 020 3245 1800

View on Map

More

City of London

Address: 107 Cheapside, London EC2V 6DN

Email: city@elslaw.co.uk

Phone: 0203 245 1806

View on Map

More

Your Full Name (required)

Email address (required)

Phone Number (required)

Enquiry

captcha