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Coronavirus (COVID-19) – All things furlough (again!)

What do we already know?

As explained in our April Newsletter All Things Furlough – FAQS and what we know so far, the Coronavirus Job Retention Scheme (‘CJRS’) has been a temporary scheme funded by the Government to create an alternative to implementing redundancies, lay-offs, unpaid leave or other measures employers might otherwise need to instigate during the current crisis.

We updated you in our July and August Newsletter Furloughed employees and Redundancy that the Government introduced new rules for the CJRS from 31 July 2020, to ensure that statutory payments for furloughed employees (of particular importance being statutory redundancy pay) are based on their normal pay, rather than their reduced furlough pay.

What’s new?

We provide more detail of this legislation and how to calculate such payments below:

Calculating Redundancy Pay:

Where employers need to make redundancies during furlough leave, the CJRS can continue to be used to fund employees’ notice pay where they are serving out their notice still in employment.  However, the CJRS cannot be used to find the redundancy payment itself. Nor can it be used to fund any payment in lieu of notice.  Employers making redundancies amongst furloughed staff should therefore chose carefully between opting for notice being served out in employment (on furlough) or paid in lieu, since the financial ramifications are very different.

Calculating Other Statutory Entitlements:

The Regulations are not limited to statutory redundancy pay, as the new law also impacts other employment rights which are calculated based on an ‘average weekly pay’ including:

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