Furloughed Employees To Receive Full Redundancy Payments

30 July 2020

The Government has announced this morning that it is bringing in a new law to ensure all furloughed employees receive redundancy payments at 100% of their normal pay, rather than a reduced furlough rate.

This will mean that 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 is likely to be less than 100%.

Government Announcements/Legislation