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Redundancy pay to be protected for furloughed workers

redundancy pay

The UK Government has announced that from 31 July, new laws will ensure furloughed employees receive redundancy payments at 100% of their normal pay, rather than at a reduced furlough rate.

The Coronavirus Job Retention Scheme (CJRS) is a temporary scheme designed to support employers whose businesses have been adversely affected by the COVID-19 pandemic. The scheme has protected the jobs of millions of workers, with the UK Government paying 80% of their salary, but the scheme/payment amounts are being wound down from August and stopped altogether at the end of October.

It has been stated that the changes will also apply to statutory notice pay and other employment entitlements, providing some reassurance to workers currently on furlough.

The UK Government recently introduced a new Job Retention Bonus to encourage firms to keep on furloughed workers, with a one-off payment of £1,000 being provided to UK employers for every furloughed employee who remains continuously employed through to the end of January 2021.

For more information please read the full press release.

We can assist you in any employment matters including issues relating to the Coronavirus Job Retention Scheme. Please contact Karl Thomas, Partner and Head of Employment and Dispute Resolution at Loosemores Solicitors via ThomasK@loosemores.co.uk or call 029 2080 3112.

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