Share This Post Share on facebook Share on linkedin Share on twitter Share on email HMRC have now published the policy paper for the Job
New law to ensure furloughed employees receive full redundancy payments
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Government brings in law to ensure furloughed employees receive statutory redundancy pay based on their normal wages, rather than a reduced furlough rate.Source: New law to ensure furloughed employees receive full redundancy payments
- New law will ensure that furloughed employees receive statutory redundancy pay based on their normal wages, rather than a reduced furlough rate
- changes will mean those furloughed under the Coronavirus Job Retention Scheme are not short-changed if they are made redundant
- the changes will also apply to statutory notice pay and other entitlements, providing some reassurance during this difficult time
The government is doing everything it can to protect people’s incomes through our Coronavirus Job Retention Scheme, which is now supporting over 9 million jobs across the UK. We urge employers to do everything they can to avoid making redundancies, but where this is unavoidable it is important that employees receive the payments they are rightly entitled to.These changes will also apply to Statutory Notice Pay, which is where employees must be given a notice period before their employment ends, varying from at least one week’s notice up to 12 weeks’ notice, depending on how long they have worked for their employer. During this notice period, employees must be paid. This legislation will also ensure that notice pay is based on normal wages rather than their wages under the CJRS. Other changes coming into force will ensure basic awards for unfair dismissal cases are based on full pay rather than wages under the CJRS. In March, the government established an unprecedented package of support for companies of all sizes across sectors, to protect businesses, jobs and incomes during the pandemic. Through the Coronavirus Business Interruption Loan Scheme, the Coronavirus Large Business Interruption Loan Scheme and the Bounce Back Loan Scheme, more than one million loans have been approved. We have also introduced a new Job Retention Bonus to encourage firms to keep on furloughed workers, with a one-off payment of £1,000 being provided to UK employers for every furloughed employee who remains continuously employed through to the end of January 2021.
New laws coming into force today will ensure furloughed workers are not short-changed if they are ever made redundant – providing some reassurance for workers and their families during this challenging time.
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Share This Post Share on facebook Share on linkedin Share on twitter Share on email Government brings in law to ensure furloughed employees receive statutory