Furlough Redundancy

Although the furlough system was designed to keep workers employed, unfortunately it doesn’t protect furloughed staff from being made redundant.

But it doesn’t affect their redundancy pay rights if they are let go from their job amid the coronavirus crisis.

As their employer you should still carry out a fair redundancy process.

They will be entitled to be consulted on the redundancy lay-off first and to receive a statutory redundancy payment, as long as they’ve been working at the business for at least two years.

How much they’re entitled to depends on their age and length of service, although this is capped at 20 years. They’ll get:

  • Half a week’s pay for each full year they were under 22,
  • One week’s pay for each full year they were 22 or older, but under 41
  • One and half week’s pay for each full year they were 41 or older.

They won’t be entitled to a pay-out if they’ve been working for you employer for fewer than two years.

There should be a period of collective consultation as well as time for individual ones if you, the employer, wants to make 20 or more employees redundant within 90 days or each other.

Your furloughed staff are also entitled to appeal the decision by claiming unfair dismissal within three months of being let go.

Contact Us

Do you require more assistance? Don’t hesitate to get in touch with us: Pi Accountancy | Expert Business Advice | Gloucester & Swindon (pi-accountancy.co.uk)

Read more