The UK Government has published legislation, which will ensure that all furloughed employees receive statutory redundancy pay based on their normal wages, rather than a reduced furlough rate.

The Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations 2020 (the Regulations) ensure that various statutory entitlements based on a week’s pay and connected with the termination of employment are not reduced as a result of an employee being furloughed under the Coronavirus Job Retention Scheme. The entitlements included in the Regulations are:

  • redundancy pay for those with more than 2 years’ continuous service who are made redundant and
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