Redundancy pay to be protected for workers on furlough

Covid-19  causes many problems across the UK. This is felt most by workers who are currently on furlough and may end up redundant. 

Redundancy Pay $ Furlough

There are currently 9.5 million furloughed workers who are receiving 80% of their regular wage. At present, workers who are on furlough and made redundant, receive redundancy pay based on their current salary. Thankfully, the government have stepped in and protected those effected by implementing redundancy based on their pre-furlough salary.

Under current employment law, workers who have more than two years continuous service and made redundant, remain therefore, entitled to a statutory redundancy payment based on length of service, age and pay. Up to a statutory maximum.

Business Secretary Rt Hon Alok Sharma MP  said:

“The government is doing everything it can to protect people’s incomes through our Coronavirus Job Retention Scheme. Which now supporting over 9 million jobs across the UK.”

“We urge employers to do everything they can to avoid making redundancies. Though when unavoidable, it remains important that employees receive their entitled payments”

“New laws coming into force today will ensure furloughed workers receive payment if made redundant. Providing some reassurance for workers and their families during this challenging time.”

Redundancies

Estimates show 150,000 workers have already been made redundant  during the coronavirus crisis. Unfortunately, numbers remain low in comparison to those expected figures that could follow the ending of the furlough scheme in October.

A think tank at the National Institute of Economic and Social Research.  Warned that the ending of the furlough scheme could lead to 1.2 million redundancies by the end of the year. The National Institute of Economic and Social Research think tank warned that the ending of the furlough scheme could lead to 1.2 million Britons being unemployed by Christmas.

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