Furlough | New redundancy pay rules 'go some way to cushion the blow'

The UK Government has introduced a new law to ensure that furloughed staff members receive statutory redundancy pay based on their normal salary, rather than a reduced amount based on furlough pay.

The new changes – which came into effect on July 30, 2020 – will mean that those placed on the Coronavirus Job Retention Scheme (CJRS) won’t be ‘short-changed’ if they are made redundant, according to Gov.uk.

In addition, the legislation will also ensure that notice pay is based on normal wages rather than wages under the CJRS.

Jon Heuvel, Employment Partner at law firm Shakespeare Martineau, told HR Grapevine that although the new law won’t offer further protection for jobs, he said “they do go some way to cushion the blow of redundancy and ensure workers are treated fairly”.