30 July 2020 #Employment
The government has announced a new law, effective from 31 July 2020 introducing changes regarding payments on termination of employment to employees who are, or have been, furloughed.
There has been no public consultation on these changes.
The main changes are:
The new law does not extend this protection to employees whose contractual notice period is at least a week longer than the statutory minimum. For example, an employee on furlough with 5 years’ service and a three-month notice period falls outside these protections so the employee would be entitled to CJRS pay only during their notice period.
Employees with regular hours and pay who have been on furlough were already entitled to statutory redundancy pay (and statutory notice pay, if applicable) based on their pre-furlough pay.
However, these changes will increase entitlements for employees who do not have normal working hours because the weeks on furlough will be counted as if they were weeks where the employee was earning full pay.