Coronavirus job retention scheme: end date confirmed and furloughed employees entitled to full notice pay

by | Aug 6, 2020

Coronavirus job retention scheme: end date confirmed and furloughed employees entitled to full notice pay 1

Coronavirus job retention scheme: end date confirmed and furloughed employees entitled to full notice pay

Despite pressure from sectors struggling with the ongoing coronavirus restrictions, the Chancellor, Rishi Sunak, has confirmed that the coronavirus job retention scheme (CJRS) will not be extended. Describing the scheme as the right response to the first stage of the pandemic, he explained that the scheme has now been adapted as far as possible. He confirmed that it will come to an end on 31 October 2020.

The Government announced on 30 July 2020 new regulations, which came into force on 31 July determining how employers should calculate certain payments to redundant employees who are on furlough leave. Under employment law, many entitlements arising on the termination of employment are calculated based on a week’s pay for the employee. This includes statutory redundancy pay, statutory notice pay and paid time off to look for new work.

For an employee on furlough leave, the amount of a week’s furlough pay could well be less than the amount they would have been paid if they had been working as usual. To stop furloughed employees losing out when being made redundant, the new regulations ensure that these payments are calculated on the basis of their usual, full pay. For instance, for employees working irregular hours, a week’s pay is usually worked out using the average over the previous 12 weeks. Under the new regulations, the periods of furlough leave will be disregarded when working out average pay.

Making redundancies is a difficult process, and employment tribunal claims are reported to be on the rise. We can help you stay on the right side of the law by following the correct redundancy selection procedure and compliance with the new regulations.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.

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