Poole Office: 01202 678555

Wimborne Office: 01202 849169

  • slider-1.jpg
  • slider-2.jpg
  • slider-3.jpg
  • slider-4.jpg

Request a Call Back

Please enter your name and phone number

Latest News

Changes to tax treatment of termination payments
29/07/2020 - More...
The government has published draft...

New redundancy protections for furloughed employees
29/07/2020 - More...
The government has unveiled an important...

How elastic is demand for your products?
28/07/2020 - More...
Many will remember the empty shelves in...

Search News

Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

»Sign up for the Newsletter
» Login

 


New redundancy protections for furloughed employees
29/07/2020

The government has unveiled an important new law that will protect furloughed workers who are made redundant. This will ensure that any employee who was furloughed under the Coronavirus Job Retention Scheme (CJRS) will receive their full basic statutory redundancy entitlement. This amount will be based on their normal wages, rather than the reduced furlough rate. The legislation came into effect on 31 July 2020.

Employees are normally entitled to statutory redundancy pay if they have been working for their current employer for 2 years or more. The exact amount of statutory redundancy pay they are entitled to is dependent on age and length of service (capped at 20 years).

The new law also affects other entitlements, including Statutory Notice Pay which must be based on normal wages rather than employees’ wages under the CJRS, and basic awards for unfair dismissal cases, which will be based on full pay rather than wages under the CJRS. The new legislation does not alter any enhanced redundancy pay provisions as part of an employee’s individual employment contract.

The government has also confirmed that other changes are coming into force that will ensure basic awards for unfair dismissal cases are based on full pay rather than wages under the CJRS.


Contact Us

Poole Office

Tower House, Parkstone Road
Poole, Dorset
BH15 2JH
Tel: 01202 678555

This email address is being protected from spambots. You need JavaScript enabled to view it.

Company Registration No: O7430971
VAT Registration No.107585703

Wimborne Office

Beaufort House, 2 Cornmarket Court
Wimborne
BH21 1JL
Tel: 01202 849169

Membership

ICAEW-White

Save