The government has recently legislated to ensure that if a furloughed employee was made redundant, certain statutory payments would be calculated with reference to the employee's normal pay and not with reference to their reduced furlough pay.
The government suggested that throughout the pandemic it had urged businesses to do the right thing and calculate payments for employees being made redundant with reference to their normal pay, rather than their reduced furlough pay. While the majority of businesses had done so, the government was aware that a minority had not. The new mandatory requirements are therefore effective from 31st July 2020.
The payments of most concern to employees will be in relation to statutory notice pay and statutory redundancy pay, each of which must now be calculated by reference to normal pay.
If you have any queries in this area please feel free to contact our Employment Solicitors: