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Coronavirus Job Retention Scheme
The COVID pandemic has not changed the rules and requirements around redundancy (Click here to read our Redundancy Quick Guide), however, there are some additional considerations to be made whilst the furlough scheme is in place until the end of October.
- Logistics - Redundancy consultations will be more difficult to plan with staff being away from the workplace (remote working, furloughed or shielding etc). You will need to consider how such consultations will work.
- Fair selection criteria – Selecting staff for redundancy based purely on the fact that they are on furlough may leave you liable to claims of unfair dismissal or discrimination depending on the reasons staff were placed on furlough leave in the first place. Ensure that your selection criteria are fair.
- Calculating Pay - Staff are entitled to be paid their full salary during their notice period even if they have only been receiving the relevant percentage of furlough pay during furlough, although this depends on whether the notice period is contractual or statutory. Redundancy pay should be based on full salary not furlough pay. Any outstanding annual leave should also be paid at the full rate of pay.
- Considering Alternatives to Redundancy – Employers still need to consider alternatives to redundancy, including redeployment, amending terms or working patterns, retaining the employee on furlough if possible and the Job Retention Bonus. Failure to do so may lead to claims of unfair dismissal.
The Job Retention Bonus Scheme
The Government is offering UK employers a Job Retention Bonus of £1,000 for every furloughed employee who remains continuously employed until the end of January 2021. This is a one-off payment to encourage firms to retain furloughed workers.
Statutory Sick Pay refund
Understand the Statutory Sick Pay refund and how to set up the detailed records that will be required by HMRC.
Last updated: 10 Aug 2020 5:03 PM